Here's the Most Underrated Financial Benefit of Not Having Kids

There are many personal finance benefits to not having kids. While most of us aren't rich, we might be more likely to have more spare income to invest and set ourselves up for the future. Raising children isn't cheap -- research from The Motley Fool Ascent found that in 2023, the cost of raising a child to age 17 cost an average of $310,605.

There's a lot you can do with $310,605, but the real gift of this lifestyle choice isn't having extra cash. Many of us still struggle with low wages and high-cost debt. But you're likely to be richer in free time and flexibility than someone with kids.

Being childfree doesn't equal having no responsibilities, but raising children is incredibly time-consuming and exhausting, especially if you have young kids. Without them, finding more time in your schedule may be a matter of giving up some free time you'd normally spend with friends or pursuing a hobby -- rather than compromising on your parenting responsibilities. And you can turn that time and flexibility into professional development for you.

A guaranteed investment

Warren Buffett was spot on when he said in 2022, "The best investment by far is anything that develops yourself, and it's not taxed at all." As a person without kids, you are uniquely positioned to take advantage here. This isn't to say that parents can't go back to school, change careers, or lean into their passions, but it's certainly easier if you're not worrying about (and paying for) another human's development.

Learning new skills can pay off in many ways, including a higher income, more work opportunities, and even just being a more interesting conversationalist at parties!

How do you invest in yourself?

A classic example of investing in yourself is putting time, money, and effort into improving your professional profile. If you've been spinning your wheels in a go-nowhere job and not earning as much as you're worth, it pays to make a few key moves with any free time you have (and the odds are that you have more of it, as a non-parent).

I changed careers a few years ago, and along the way, I paid about $150 for help from a career counselor. We talked about the kind of work I was targeting, and she rewrote my resume, tailoring it to appeal to employers in a new field. I also boosted my online presence with a revamped LinkedIn profile. These are all good and low-cost places to start if you're hoping to change your work circumstances.

Education is a great way to improve your standing in the world. And this doesn't have to mean enrolling in your local university (although it certainly can). Thanks to the wonders of the internet, we have access to resources for learning new skills -- and if you're not responsible for child care, you may have more time to use them.

LinkedIn Learning is a good place to start -- you'll find resources for more topics than you can imagine, including customer service, time management, accounting, and beyond. Explore options like Skillshare, as well -- it offers more than 25,000 video classes and access can be yours for a reasonable annual cost (after a free seven-day trial).

Take advantage of networking opportunities in your current field, or even the one you aspire to. Attending professional conferences is a good way to do this, and you might just find that getting the chance to meet new people and put in face time with hiring managers and tastemakers ultimately pays for itself.

Create a financial safety net, too

If you are sans children and fortunate enough to have some extra financial breathing room, there's more you can do to ensure your security today, tomorrow, and into the future.

Save up an emergency fund

Make building an emergency fund a top priority in your life. Experts say it's best to aim for enough cash to cover three to six months' worth of regular bills, and without kids, your monthly bill tab is likely to be lower than a parent's. That still might be an overwhelming figure to save, but having any amount of money in a savings account can improve your peace of mind and save you from paying interest on a surprise bill.

Invest for retirement

You won't be helping a child pay for college, so why not focus on ensuring your future financial security? If you have access to an employer-sponsored retirement plan, like a 401(k), and said employer will match your contributions to a certain point, there's no reason not to invest enough to get the match.

If you want more flexibility with choosing investments, consider also opening an IRA with a brokerage firm to get access to stocks, ETFs, and beyond.

Avoid high-interest debt

Life is expensive, but if you can stay out of credit card debt, you'll give yourself a huge advantage. The average credit card interest rate hit 21.47% near the end of last year, and tacking a surcharge like that onto your purchases is a short trip to being broke.

If you're already struggling to stay afloat, increasing your income is your best chance of paying off debt sooner. And if you don't have kids to care for, finding extra time for more hours at work or perhaps a side hustle could be more doable. Consider consolidating your debt via a personal loan or balance transfer credit card to make it easier and cheaper to pay off.

Being able to leverage time, money, and flexibility to invest in your growth, talents, and career is an unsung benefit of being childfree. Lean in and reap the rewards.