When you hear the word DINK, you may be brought back to a childhood playground insult that you haven’t heard in years. But the DINK lifestyle is something that’s become increasingly popular–and it has nothing to do with being a kid. In fact, it has everything to do with not having kids and the financial impact of that decision.
What is a DINK?
Let’s start by answering the question: What is a DINK? DINK is a slang phrase that refers to a household with two working adults and no children. It stands for dual income, no kids. That’s DINK for short.
Having two incomes can have a huge impact on your lifestyle and financial health. When kids aren’t in the picture, it becomes much easier to afford a comfortable lifestyle with little in the way of financial stress. It also provides couples with a level of flexibility that wouldn’t be possible if they had children.
Types of DINKs
People at various stages of life can be DINKs. Here’s a breakdown of some of the situations that might allow people to live the DINK lifestyle.
- Couples who opted not to have children, either by choice, biological limitations or medical conditions
- New/young couples who may want kids someday but don’t have them yet
- Empty nesters whose kids have all moved out of the house
Those are the most traditional DINKs, but there are a few other circumstances that could fall under that umbrella. For example, an older parent who lives with a grown child, and who both work, could live the DINK lifestyle. The same could be true of two working roommates. In other words, DINKs don’t need to be related by blood or marriage.
An overview of the DINK lifestyle
The DINK lifestyle is something that’s become increasingly popular. According to PEW Research Center’s 2021 poll, 44% of non-parents ages 18 to 49 say it is not too or not at all likely that they will have children someday.1 That represents a 7% increase from the previous poll in 2018.
It’s undeniable that living the DINK lifestyle offers greater financial and personal freedom than living a life with kids. A 2017 report from the USDA (the last year for which figures are available) estimated that couples can expect to spend an average of $233,610 raising a single child.2 With inflation, that number is significantly higher in 2024.
DINKs aren’t necessarily wealthy, but they do tend to have more disposable income than couples with kids. That means they have more to spend in other areas, and that’s something that can be beneficial throughout their lives.
DINK benefits to consider
Now, let’s review some of the biggest benefits of living a DINK lifestyle.
Flexibility
DINK couples can expect to have more flexibility in their lives than couples with kids to raise. Provided they have enough money saved (and enough income coming in) one partner can take a sabbatical without needing to worry about running out of money. DINK couples also have more flexibility when it comes to travel and how to spend what they earn.
More disposable income
As we noted above, childcare is expensive. If we use the 2017 number of $233,610 and divide it by 18 years, we’re looking at just under $13,000 per year, per child. Couples who aren’t spending that money on kids can put it toward a down payment on a home, a new car, travel, or retirement.
More time to focus on careers
One of the biggest struggles that can come with having kids is that one partner–usually the mother–may sacrifice career advancement (and income) because she has to take time off to have children and care for them. DINK couples can focus on their careers and as a result, may end up going farther and earning more than couples with kids.
More time for couples to bond
When couples have kids, particularly if they do it early in a relationship or marriage, it cuts into their quality time to bond as a couple. Even though we love them, kids get the lion’s share of attention and time. DINKS have the opportunity to focus on one another and that can lead to deep love and commitment.
Are there any disadvantages to the DINK lifestyle?
While the DINK lifestyle can be very attractive, there are a few potential disadvantages to consider, although many of them can be avoided with planning.
- DINKS get fewer tax breaks because they don’t have children. For example, the Child Tax Credit gives parents a tax credit of up to $2,000 per child.
- Overspending can be a risk when couples have a lot of disposable income. DINKS may run into trouble if they don’t set enough money aside for long-term goals such as retirement.
- DINKs of child-rearing age may experience social isolation if their peers are heavily involved in child-centric social activities. Parents often form social groups around their children’s activities, such as youth sports, school events, and playdates. These activities create social opportunities that may not be relevant or accessible to those without children, leading to a potential disconnect between DINKs and their parent peers.
- DINKS have less support as they age than couples with children. A lot of grown children end up taking care of their parents as they age. That may mean helping them financially and even providing them with a place to live. DINK couples won’t have kids to help them, and that may mean they need to save more money for retirement.
- Another common argument is that parenthood offers the fulfillment of nurturing a child, celebrating their achievements, and forming a deep, unconditional bond. Additionally, raising children can provide a strong sense of purpose and personal growth. For some DINKs, the absence of these experiences, coupled with personal, social, or familial pressures, could potentially lead to feelings of regret.
There are a lot of attractive things about the DINK lifestyle. It may be beneficial for DINK couples to work with a financial advisor to make sure that they’re setting short-term and long-term financial goals and avoiding overspending. An advisor can also help you avoid some of the tax pitfalls that may impact you as a DINK couple.
Conclusion
Whether you’re already living the DINK lifestyle or just thinking about it as an option, the information we’ve provided here can help you consider the potential benefits and disadvantages and avoid potential pitfalls along the way.