A survey uncovers that nearly one-third of parents in the U.S. cite financial struggles as a key barrier to family expansion.
It also reveals other significant financial behaviors and concerns among parents.
A new survey reveals that around one-third of American parents say that financial constraints are a limiting factor for having more children.
The survey, conducted by online insurance marketplace Policygenius, also discovered that parents with annual earnings of $80,000 or more are more likely (62%) to believe they are providing a more financially secure upbringing for their children than those earning below $40,000 (40%).
Survey Methodology: Family Expansion Plans and Savings
Policygenius commissioned YouGov to conduct the survey, which involved 1,364 adults, all of whom confirmed they were parents.
The survey was carried out online from May 4 to May 8, 2023.
The results were weighted to represent the entire U.S. adult population, with a margin of error of +/- 6.9%, depending on the question.
Additional insights from the survey show that 40% of parents believe they would have more savings if childless, while around 30% foresee more vacations, and 26% anticipate less debt.
Parents who have some form of life insurance are 50% more likely to believe they are offering a more financially secure upbringing for their children than those without life insurance coverage.
Financial Behaviors Leading to Perceived Affluent Upbringing
The survey also highlights several financial behaviors that distinguish parents who believe they are providing a more financially secure upbringing for their children.
These include paying off debt, seeking better-paying jobs or benefits, purchasing life or disability insurance, and consulting a financial advisor.
Parents Desire to Leave Children Financially Stable, Not Necessarily Set for Life
Interestingly, a significant number of parents prefer to leave their children financially stable rather than providing a lifetime setup (47% vs. 19%), according to the survey.
“It’s concerning to see that parents feel that having children impedes their life goals such as traveling, retiring early, or having more children,” said Myles Ma, a certified personal finance counselor at Policygenius.
He suggests that strategic financial planning and management can help parents feel more secure.