Key Takeaways
- “Dual Income, No Kids” (DINK) defines a household with two earning individuals and no children.
- DINK households often have higher disposable income, making them attractive targets for marketers of luxury and investment products.
- Various forms of DINK households include new couples, empty nesters, and other childless couples.
Understanding Dual Income No Kids (DINK)
A DINK household consists of two earners without the financial responsibilities tied to children. This setup allows for greater financial freedom and opportunities for substantial savings and discretionary spending.
Financial Implications
Raising children entail considerable costs—food, clothing, education, and more. For instance, a Brookings Institution study estimated that the average middle-income family expends $310,605 to raise a child born in 2015 until the age of 17. The U.S. Department of Agriculture estimates this figure at $233,610, not considering inflation.
In contrast, DINK households save significantly, utilizing these funds elsewhere—be it investment in luxury goods, higher savings contributions, or other discretionary expenses.
Living Efficiency
Childless households need smaller living spaces, reducing housing costs. Shared resources and responsibilities efficiently lower expenses further. These households leverage combined financial resources for significantly higher disposable income compared to both single earners and couples with children.
Investment Potential
DINK households often have the capacity to invest more aggressively. Funds that might have gone into child-rearing can be diverted into stocks, bonds, or other investment avenues, potentially garnering higher returns over time.
Types of DINK Households
Several dynamics fit into the DINK category. They include:
Couples Who Opt Out of Parenthood
Many couples make a conscious decision not to have children, focusing instead on personal and financial aspirations without the associated costs.[1 Study Pew Research Center]
Couples Unable to Have Children
Some couples, including those of the LGBTQ+ community, may face challenges in having children. Financial or personal decisioning may steer them away from alternative child-rearing options, like adoption or IVF. [Costs: adoption $50,000+, IVF $12,400 The American Society for Reproductive Medicine]
New Couples
Newly formed households often enjoy the economic benefits of dual incomes while planning for long-term commitments like purchasing homes or cars. Their current financial freedom aids in savings or debt reduction geared towards eventual parenthood or other major expenses.
Empty Nesters
Couples whose children have left home transition back into the DINK stage. The funds liberated from child-rearing can be redirected to savings, investing, travel, and personal leisure.
Other DINK Arrangements
The DINK categorization also applies to households where the members share earnings and living space without children. This could include roommates or adult family members living together.
The DINK Lifestyle
Living as a DINK entails the freedom to allocate time and resources toward leisure, dining, and personal interests that might be less accessible to parents. These households often excel in financial preparedness, including retirement savings, given their higher disposable income.
Cost of Raising a Child in America
While costs fluctuate with inflation, raising a child typically ranges between $200,000 and $300,000. Brookings Institution pinpoints the average expense at $310,605, while USDA approximates $233,610.
Definition of a Dual Income Household
Dual-income households consist of two earning adults, pooling finances for mutual benefit. This increased disposable income provides significant freedom to save and invest.
The Bottom Line
Regardless of the underlying reasons—elective childlessness, financial constraints, or broader life choices—DINK households benefit from greater financial elasticity. With no child-rearing costs, they can better allocate resources towards spending, saving, or investing for a secure financial future.
Related Terms: DEWK, childless couples, disposable income, investment, financial planning.
References
- Brown Brothers Harriman. “Dual Income, No Kids”.
- U.S. Department of Agriculture, Food and Nutrition Service. “2015 Expenditures on Children by Families: Parents Projected to Spend $233,610 to Raise a Child Born in 2015”.
- Brookings Institution. “It’s Getting More Expensive to Raise Children. And Government Isn’t Doing Much to Help.”
- Pew Research Center. “More Share of Childless Adults in the U.S. Don’t Expect to Ever Have Children”.
- Child Welfare Information Gateway. “Planning for Adoption: Knowing the Costs and Resources”.
- ReproductiveFacts.org, American Society for Reproductive Medicine. “Is In Vitro Fertilization Expensive?”
- U.S. Census Bureau. “Households and Persons Per Household”.
- SoFi. “Dual Income, No Kids (DINKS): Definition and Explanation”.
