Many couples live a DINK lifestyle — dual income, no children. What are the pros and cons?
You’ve seen it all over social media. You know, those jovial couples who are always jet-setting from one exotic destination to the next. Like the men and women you might meet at work — yes, the ones who are always dressed well. Where did they go recently? Hawaii again? Or is it Switzerland?
They make the most of their DINK lifestyle. Dual income, no kids. Rich in money and devoid of the responsibilities of having children, this couple has the life that many people dream of. But is it as great as it sounds? Or are there disadvantages too? What is the DINK lifestyle exactly?
Short for “dual income, no kid,” DINK is a term given to couples in which both partners earn income, but have no intention of having children.
This is a bit different from the DEWK lifestyle, which means “working double with the kids.” Couples in the latter category may have similar net worth, but the responsibilities of having a family have an impact on how they spend their money.
Although the term DINK has existed since the late 1980s, it has recently become popular on social media. Many couples share snapshots showing their lives without children, highlighting the benefits of travel, free time and the luxuries they enjoy. It is for this reason that marketers of luxury products and services spend a large portion of their budgets targeting the group called DINKs.
Benefits of DINK lifestyle
Extra Money
According to a report issued by the U.S. Department of Agriculture (USDA), the cost of raising a child from birth to age 17 is $233,610. A couple with two children will have childcare costs of over $460,000. Without children, the couple can enjoy the money any way they want. While some of these funds should be used for future investments, others can be used for luxury items such as fine dining, first-class travel, the newest luxury or sports car, or an expensive condo to go along with a luxurious lifestyle.
Plenty of Free Time
DINK couples don’t need to squeeze Little League games, dance recitals, PTA meetings, or dentist visits into their schedules. When the workday is over, their time is their own. They are free to go shopping, to the gym, watch a film, or eat at their favorite restaurant. And they can stay out late at night, without having to worry about paying a babysitter.
Increased Mobility
Without having to consider children at school, it will be easier for DINK couples to move geographically, either out of town or across the country. When an opportunity arises, a “For Sale” sign can be put up, and moving companies will come calling. While it is still difficult to leave friends and family behind, DINK couples can say “Yes” to better job opportunities and hit the road.
It’s also easier to move to a bigger or nicer house without kids. Changing schools is a no-brainer, and there are more funds available for new furniture, curtains and other important expenses for a new home.
Disadvantages of the DINK lifestyle
Lack of Support as We Age
According to the Pew Research Center, 12% of parents in the US care for an adult family member and spend more than two and a half hours per day on unpaid care. This represents both an emotional and economic benefit for adults who have children caring for them. DINK couples will never have the satisfaction of having a child who is grateful to return the care given to them as a child.
Fewer Tax Breaks
Having a child under age 17 by the end of the calendar year allows you to receive a tax credit of up to $2,000 per child. Since the tax credit reduces your tax bill dollar for dollar, two qualifying children can reduce your tax bill by $4,000. This is quite a large number when multiplied by 17 years of eligibility, and will likely increase in the future.
Potential for Overspending
Being young with a lot of money to spend as you please can cause some problems if you are undisciplined or impulsive. Hopefully, at least one partner can be the reason when it comes to the balance between saving and spending. All those ads aimed at DINK couples can be very tempting and can quickly deplete bank account balances.
