Ad
The trend of my generation either waiting to have kids or not having kids at all has been on the rise for some time, and it's easy to see why.
According to Red Bridge, an Australian-based research company, more than half of 18- to 34-year-olds are choosing not to have children due to financial challenges, and about a quarter are waiting longer to have kids.
In New Mexico, the average age that women become mothers is 23 years old. However, for Hispanics or other ethnicities that aren't Caucasian, the age is 21.
As I just celebrated my 23rd birthday, I have considered the circumstances in which most of my friends who are parents are in. I have to say I am grateful for my situation because, generally, people my age aren't as well off as me. But they should be.
The average annual income for the individual (at any age) is around $30,000, and the average household income is around $60,000 on a normal day. The average house cost just increased again last month to more than $370,000. Then you take into account all the expenses people now have. There's living expenses, travel expenses, health care, college for some, entertainment expenses, pet expenses and more. Then consider taxes as well. I beg you — do the math.
Now, throw a baby into the mix. Not only are you dedicating time, energy and soul to this child that came out of you but also money. But just how much money are we talking here?
As a generally curious person and someone who likes to plan these things out, of course I made a budget.
The first thing that came to mind was actually getting pregnant — which for some can be difficult — but I decided to calculate on the basis that this fictional woman had no problem getting pregnant. Then, consider all the pre-natal care that goes into pregnancy. You have check-ups with the doctor, which can cost $90 to more than $500 per appointment if you don't have insurance. With good insurance, it can cost $25-$30 per visit. That's if you don't have any medical issues like diabetes or an STD to worry about.
Then there's the birth itself ...
Without insurance, the average cost of delivering a baby can be upwards of $18,000. For comparison, my car cost $18,000. You could also get half of a college degree for that amount of money. And that's if you don't need a C-section, which can double the cost. With insurance, that price drops to around $2,000-$4,000, which still isn't that affordable for some.
Ad
Once the baby is born, there's is postpartum care to be concerned with.
According to the Health Cost Institute, the average person spends just over $3,100 on postpartum care during the first year of their child's life. The first 90 days after delivery account for $870, and the first 60 days account for $580. Spending is highest in the month after delivery, at $524, and then decreases over the next three months to around $250 per month in months four through 12.
Of course, there's all sorts of material fees for food, clothing, diapers, etc., after that.
I did some further research by asking parents their experiences with having a baby. This poll included several of my friends, old and young. The most common thing I heard from all of them was the most expensive part tended to be the birth itself along with any medical expenses. The other expensive thing was day care costs.
I looked into local prices for day care. As of August 2024, the average starting rate for infant child care in the Albuquerque area is $17.86 per hour. That's about $700 per week, or almost $3,000 per month. Good grief. Might as well hire a nanny.
Most of my friends say they had family look after the kid(s) or took the them to work. Some did day care but went with the more affordable options. Others said their job provided day care.
The older friends, ranging from ages 40-80, clarified that when they were having their kid(s), the housing prices were significantly lower than they are now. One friend remembered buying a house at $11,000 in 1967 and later buying a house at $87,000 in 1995. Just a 28-year difference caused the housing price to increase that much. In 1967, the minimum wage was $1.40 nationally. Today, the national minimum wage is $7.50. In New Mexico, the minimum wage was $1. It is now $12.
Now, if we compare just the average income to the housing prices in 1967, 1995 and 2024, it shows just how big of a change there actually is. Average annual income in 1967 was $8,200 and the houses averaged around $22,000. That means people's income was around 37% of the price of a house back then. In 1995, the annual income was around $27,845 and houses were around $150,000, making people's income about 19% of the housing price. This year, average income is around $60,000 and houses are more than $370,000, meaning people's income is about 16% of the housing price.
Because of this, it's taking people longer to pay off their homes. This is without considering all the other expenses that go into owning or paying off a property.
My younger friends say that they either plan on waiting to buy a house or waiting to have a baby. The ones who are parents already say they are struggling financially at times. Some live paycheck to paycheck. Those who are living comfortably have saved money as much as they can over the years.
So it brings me to these questions: Why are we having to finance human beings before they are even born when we could be putting that toward a house? Also, how are we expected to live comfortably when the essentials of life are so far out of reach? If the average income is struggling with the essentials, then what boat is the minimum income in?
Some of us want a kid but can't scrounge up enough money to pay for it all. Others who don't want a kid are still concerned with buying a house but the prices are outrageous. Those of us who want both are wondering which to prioritize first financially. People already had a kid are committed to prioritizing the baby.
I am aware there are programs out there to help with these things, but that's the other side of this. Not everyone knows about these programs.
Is it any wonder why people my age don't want to have kids? I think not.
