How Low Birth Rates Could Affect Your Wallet | theSkimm

Baby-making in the US recently hit a 32-year low. Meaning you might get to spend less money on baby shower gifts. Here’s how else low birth rates could affect your wallet. Hint: These will probably cost you more than a $100 diaper cake. Womp.

There’ll be fewer workers to pay for gov programs. Like Medicare. And Social Security...which is already having financial problems. A declining birth rate means eventually there’ll be fewer workers to pay the taxes that fund those programs. Meaning your tax rate could go up. Not fun. Or Social Security benefits could change. Either way, not a bad idea to invest a little more for your retired self. Just in case.

Certain job markets will feel the pinch. Companies that make baby supplies, car seats, and toys are already feeling the blow. Last year, Kimberly-Clark cut thousands of jobs to make up for lower sales. That might happen at other companies, too. Which also affects investors. When public companies start feeling the pinch, their stock price may drop.

A recession could be on its way. That’s according to Notre Dame researchers. They say steadily declining birth rates are a good indication that economic trouble may be around the corner. The thinking is that since most US births are planned, couples who don’t feel good about the economy may delay having kids.

theSkimm: Babies are expensive. Turns out, Americans not having babies could cost you money, too. Working on your savings — the kind you can use in the short term and to live off of in retirement — is a good defense. No matter what happens next.