Economic factors are preventing Generation Z from starting families

Asking a Gen Zer when they plan to have kids is basically a microaggression at this point. We all know the stereotype about us spending too much money on iced coffee and avocado toast. But let’s be real for a second. The math simply doesn’t math anymore. I look at my bank account after payday, and I genuinely wonder how anyone affords a goldfish, let alone a human child.

We aren’t refusing to start families because we hate tradition. We are pausing because we can’t afford the admission price. A recent Bank of America report highlights that 51% of Gen Z cite the cost of living as a barrier to financial success. You can’t exactly plan a nursery when you are stressing about the electric bill. We face unique hurdles that our parents never had to jump over.

Generational Wealth Deterioration

This decline is rooted in decades of wage stagnation coupled with the soaring cost of major wealth-building assets (housing, healthcare, and education), meaning their income has far less purchasing power. Furthermore, the shift from guaranteed pensions to riskier, self-funded 401(k) plans transfers financial responsibility entirely to the individual.

The combined effect is that Gen Z must overcome a substantially higher financial barrier to achieve basic stability, making the high costs of raising a family appear nearly insurmountable.

Health Insurance

The U.S. Census data for working-age adults (ages 19-64) highlights a direct economic barrier to Gen Z family formation: health insecurity linked to income. Approximately 25% of adults below the poverty line were uninsured (2020-2023), exposing them to catastrophic medical debt from childbirth and infant care.

A further 16.1% of the low-to-moderate-income group (100% to 399% of poverty) were uninsured in 2023, caught in a “coverage trap” where they cannot afford private insurance but do not qualify for public assistance. This high rate of financial risk and the inability to secure basic health protection, a prerequisite for raising a child, directly prevents or delays family planning for financially vulnerable members of Generation Z.

Paradox of Unused PTO

The high prevalence of unused Paid Time Off (PTO) among Americans, as revealed by the Solitaired study, underscores a deeply rooted economic and cultural anxiety that impacts overall well-being. Nationally, the average worker received 12 days of PTO in 2024 but forfeited 25% of it, using only 9 days.

This decision by nearly half of all Americans to leave time unused is primarily driven by economic caution, with the top reason cited being “saving for a rainy day”—an attempt to self-insure against future financial emergencies by rolling over leave. This financial concern is compounded by workplace anxiety, as the next most common reasons were “being too focused on work” and “worry about work piling up” upon return. This trend is particularly pronounced in industries like Government (5.87 days unused) and Nonprofit (4.92 days unused).

Personal Health Factor in Family Planning

For Gen Z, who prioritize mental and physical well-being, the high personal health risks associated with the postpartum period directly influence their reproductive choices. The perceived trauma and lack of adequate medical and governmental support make pregnancy a greater personal risk than it was for previous generations.

Childcare Costs

Prices for childcare have consistently risen faster than the overall inflation rate, increasing by 29% between 2020 and 2024, 7% above the general rise in consumer prices. This sustained growth has pushed the national average annual price for center-based infant care to approximately $13,128.  

In almost all U.S. states, the cost of childcare for two children now exceeds the median annual rent or mortgage payment, and for an infant, the cost often surpasses in-state public university tuition. The high cost means that families are forced to dedicate an unsustainable portion of their income to 35% for single-parent households, far exceeding the federally suggested limit of 7%.

Financial and Emotional Toll of Family Instability

The U.S. has the highest rate of children (one in four) living in single-parent households globally, a context that directly exposed many Gen Z members to the associated financial fragility (nearly 30% of single-mother families live below the poverty line). This financial risk is compounded by the intense emotional drain of litigation, where parents experience severe stress and anxiety, and children are caught in a cycle of fear and insecurity.

Gen Z’s Financial Safety Net

The median emergency savings balance for this group is reported to be as low as $400, and over 70% of Gen Z adults lack the recommended cash reserves to cover three months of expenses. Specifically, 34% report having no emergency savings whatsoever.

This extreme financial vulnerability means that nearly half (around 48%) would be forced to resort to borrowing or using high-interest credit cards to cover an unexpected expense, creating debt that sabotages their ability to save for major life commitments like childbirth or housing.

Overturning of Roe v. Wade

The Dobbs decision, which eliminated the federal right to abortion, has significantly altered Generation Z’s view of parenthood by increasing anxiety and the perceived risk of pregnancy. The ruling, which sparked legal uncertainty regarding necessary care for complications, has fueled a notable rise in young adults identifying as childfree by choice.

Driven by a loss of bodily autonomy and the desire to avoid the significant health and financial burdens of high-risk pregnancy in restrictive states, Gen Z is actively changing its reproductive behavior, including adopting more stringent contraception or considering abstinence.

Government Instability

The severe instability of the U.S. government, highlighted by the 43-day shutdown (October 1 to November 12, 2025), the longest in American history, directly impacts Gen Z’s financial security and their ability to start families.

This political deadlock caused an unprecedented disruption to the Supplemental Nutrition Assistance Program (SNAP), the country’s main food security safety net:

• SNAP Freeze: Federal SNAP funding was frozen on November 1, 2025, jeopardizing the food security of the 41.7 million people who rely on the program each month.
• Mass Uncertainty
• Cost-Saving Tactics: Families were immediately compelled to implement cost-saving measures, such as buying less food and reducing non-essential spending.
• Heightened Risk

Key Takeaway

• Economic Collapse: Years of generational wealth deterioration (wage stagnation, crippling student debt, and delayed homeownership) have made achieving the basic financial stability needed to raise children nearly impossible. This is worsened by government instability, such as the prolonged government shutdown and the temporary freeze on SNAP benefits, which underscores the unreliability of the social safety net.
• Safety and Autonomy Risks: The reversal of Roe v. Wade (the Dobbs decision) has increased anxiety, reduced bodily autonomy, and heightened the perceived risks of pregnancy due to inadequate maternal healthcare and legal ambiguity. This safety concern is compounded by the high prevalence of single-parent households and the emotional drain of child support litigation, reinforcing the view that familial stability is fragile and comes with unacceptable personal costs.

Disclosure line: This article was developed with the assistance of AI and was subsequently reviewed, revised, and approved by our editorial team.

Weight Loss Journal Ideas- How To Use Bullet Journaling To Lose Weight

Weight Loss Journal Ideas- How To Use Bullet Journaling To Lose Weight

Your weight loss journal doesn’t have to be anything fancy. You can start by just using a notebook and a pen. But if you want something a little more organized, you can use bullet point templates specifically designed for weight loss journals. Bullet journals are so hot right now!

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