As fertility rates hit a historic low in 2024, the dual income, no kids (DINKS) lifestyle is on the rise. According to a recent poll, 43% of unmarried American adults want to get married, but only 28% said they want to have a child. These stats lead to questions about DINK’s finances and how they build wealth. Let’s walk through some of the financial channels used by DINK households and how these can change with age.
Save
On average, DINK households save twice as much as parents each month proving to be a prominent place for extra funds. As the years go on, continuing to prioritize savings can be beneficial. From extra emergency savings to timeless trips and upgraded homes, a full savings account gives a little extra cushion for life’s twists and turns.
Whether you plan to have children in the future or forego that chapter, having a fully funded savings account can be a jumping-off point for whatever life brings your way. A typical recommendation is to start with 3-6 months of expenses in a savings fund and build from there. Setting a savings goal, automating contributions and tracking progress can be influential as couples age into later stages of their lives.
Defend
Another financial area to consider is defending the savings you have accrued with insurance. There are a variety of types of insurance to consider. Life insurance and supplemental health insurance are two common types of insurance that couples use to protect wealth. Life insurance protects those who depend on your income and can function as an investment vehicle while supplemental health insurance protects you from unexpected medical costs.
As we age, it is important to protect your health, accrued savings and investments from unexpected expenses. Insurance creates an extra safeguard to keep your funds directly in the intended place.
Invest
Investing in your 401(K) is one way DINK households are building a secure financial picture. As couples get older, it is important to be mindful of risk tolerance changes. While you may have been comfortable with a more aggressive portfolio in younger years, you may become less comfortable as the years go on.
Evaluating your portfolio on a regular basis allows you to ensure your recurrent investments align with your present goals. If you have questions, talk to a professional to get extra insight, trends and advice you can trust.
Spend
Embracing financial freedom is another rewarding way to use your income. While investing, saving and securing proper insurance are essential components of a solid financial plan, so is enjoying the money you work hard to earn. For DINK households, this can mean spending on experiences like travel and other lifestyle enhancements.
A recent guide revealed that many DINK households choose to allocate their additional income towards travel, with 86% of Americans in DINK relationships prioritizing other life goals over raising children. Considering that the average cost of raising a child today is $313,939, many choose to pursue personal passions and experiences.
As the years go on, spending habits will evolve and priorities may change, but indulging in your personal joys can be an integral piece of your overall happiness and satisfaction.
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