Dual Income Households: How Kids Change The Financial Picture

Mar 11, 2024

3-minute read

Share:

A young couple sits on the floor next to cardboard boxes, possibly discussing or planning their move into a new home.

Raising children can be rewarding, but it’s also a serious financial commitment. A prominent reason to postpone or opt out of having children is to save money, but how much money are these couples really saving?

We wanted to learn how the finances of dual-income households with and without children differ from each other, so we analyzed data from the U.S. Census Bureau’s Current Population Survey (CPS) to compare dual-income households without children/kids (DINKs) to dual-income households with children/kids (DIWKs), both in a single-family setting.

We explored such factors as income, homeownership rates and retirement savings. Though it’s clear more Americans are waiting until later in life to have children or have opted not to become parents at all, are these choices actually helping them financially?

Key Takeaways

  • Dual-income households without kids (DINKs) earn an average of $138,000 per year, nearly 7% more than the $129,000 income of dual-income families with kids (DIWKs).
  • DINKs contribute about 9% more than DIWKs for retirement, particularly in states where DINKs earn a higher income, like Connecticut, Illinois and Rhode Island.
  • Nationally, 72% of DIWKs and 59% of DINKs own their homes.

See What You Qualify For