How A Declining Population Is Detrimental to Our Financial Wellbeing And The Unexpected Best Places to Grow A Family in the U.S. in 2021

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Elon Musk, Tesla’s CEO not founder, entrepreneur, space connoisseur, future SNL cast member, and most impressive, father of 7 is an influential spokesperson in various spheres and on a variety of platforms, most often touting the price of Bitcoin or some meme stock that isn’t relevant to most of us besides to his dominant Reddit retail trading fan base.

Finally he has Tweeted something crucial about this day in age that we should all be concerned about. If you’re 21 or older, a personal recommended age for various reasons, you can actually do something about it.

The 50-year-old billionaire shared his concerns with the Wall Street Journal earlier this year stating,

“Population collapse is potentially the greatest risk to the future of civilization.”

And I have to agree with him.

As Professor Galloway, legendary NYU marketing professor states these days, “young American men are facing a crisis. They are bored, lonely, addicted to social media and at staggering rates, aren’t enrolled in college.”

Why is this contributing to a decline in population growth?

College is known to be the most transformative period of one’s life and it also happens to be a popular time for many when they meet their second half. With less relationships means less kids and no future generations to disperse wealth.

Although folks in the same income class tend to marry one another as celebrities hang out with celebrities, with less college enrollment for young men and lack of diversity, wealth inequality is growing. Earnings per household and economic prosperity flourishes when there are stronger connections within a community and a new generation to rule the world.

Although Musk is the last person to promote institutionalized education, college is at the center for building relationships and provides the first step towards increasing population growth.

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Less Relationships = More Inequality and Problems

Coming out of the pandemic, many of us are craving alone time and might not want to dip into the dating game again. But in our lives, we always need people around us to thrive and feel secure. The basic needs of a human being is to feel loved, supported, listened to, and secure. We are social animals and without mates, we can only get so far.

I’m not here to demean being single. Everyone is different and should choose who they want to be with and how they want to spend their lives but it is important to realize you need people in your life.

We cannot do everything on our own all the time and having a helping hand and support system will put less pressure and work on your shoulders. Plus, I’ve heard that having a child and growing a family are the greatest gifts in the world. As a result it also propels financial freedom, flexibility, and equality in your country in the fastest way.

So why is Musk stating population stagnation is such a prevalent and dangerous issue that must be addressed?

Families are the foundational element of a thriving society and population decline is toxic to the health of the economy. Arguably one of the most important decisions we make in our lives is who to spend the rest of it with.

Of course, it takes time, patience, more time, and extreme commitment to be a major part of someone’s life. It is a contractual obligation to take care of someone when they are need and be there for them, something people aren’t always willing to commit to.

Due to covid, the birth rate has been busted due to uncertainty yet surpassingly I’ve never known this many pregnant women! Is it just me? There was a baby boom for some but globally, births became stagnant and has been for years.

According to data released by the US Centers for Disease Control and Prevention’s National Center for Health Statistics, the birth rate in the US fell in the last quarter of 2020 by more than 6% from the previous year.

This is for obvious reasons of parents wanting to avoid contact within the hospital, unsure about their financial means to give birth and support a child, and unsure how long covid will last. Prior to the pandemic, declining birth rates were continuing in the US for decades and has fell for a record low of 55.8 births for 1,000 women aged 15–44 according to the National Center for Health Statistics.

Overall the trend hasn’t changed but what’s certain is uncertainty and couples tend to postpone having babies and a little fun when life gets rough. Reluctance starts to brew when there’s significant financial turmoil in the economy and GDP declines.

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In addition to these factors, couples postponed having children during covid besides covid due to:

-Physical health concerns, no vaccine available pre end of 2020

-Mental health concerns, 30% of pregnant women report having anxiety prior to pandemic and 72% during pandemic according to UTSWMed

-Age concerns-biological clocks are ticking

-Economic concerns-children are expensivooo (read here how much) and with job loss and insecurity, families running on tight budgets-especially as first time parents

The good news is, in the future fertility is predicted to rise up according to sociologists, demographers, and gynecologists. Nobody knows the actual number from 2020 yet but when combining the lower birth rates with the number of deaths in the US last year due to covid, and decreased migration, the US is seeing staggering reduced population growth at a record high. Even in the 20th century during the flu epidemic, population decline wasn’t this stark.

So what does this have to do with the economy at large?

Don’t we have enough people to run the economy and are’t robots already taking over?

A larger population leads to more economic prosperity, innovation, education, economic activity in terms of trade, solvency in the retirement system, and ideal social environments for humans to thrive.

On average, married people are 77% wealthier than single people with their net worth increasing on average by 16% each year. They are naturally happier, healthier and live longer as well according to Statistica. Higher marriage rates are correlated with higher GDP per capita, greater social economic mobility, reduction in child poverty of as much as 80%, and greater retention of economic wealth.

The ratio for every retiree to middle aged American shouldn’t be low. Look at Japan where birth and marriage rates have fallen which played a massive effect in slow GDP and economic growth throughout the past few decades. They are overflowed with retirees and not enough youngsters to keep working and care for elders.

Women consistently value the financial capabilities of a potential partner more than men do which should be flipped. It’s a red flag since they live longer than men but something they consider to be able to grow a stable family. Money should never be out of the picture when choosing a mate. Resourcefulness and future capabilities are what humans need to live.

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Growing Past the Bust

If you were fortunate to have a healthy child during 2020, are raising one currently, and or are planning on having one, maximizing your budget and considering all your options is a no-brainer.

Especially if you have the luxury of working from home, there’s no question that you should move to a lower cost area in the middle of the country than stay in San Francisco where the median home price is $1.5m for a studio! The coasts are only rising in home prices as wages mixed with various incentives to lure workers back into the offices are growing.

When it comes to growing that pumpkin, there are tons of factors to consider from the size of the property to schools, job opportunities, living costs, environment, neighborhood, noise, neighbors, you name it.

Firstly considering the costs of a child are vital. They are becoming more expensive than ever due to inflation and health care and educational costs. On average these days it can easily cost up to $500k to take care of a child up to 18 years old no matter where they live! That is crazy considering the median net worth for an American family of 2.5 kids, not sure where the 0.5 is from, is only $200k. This won’t cut it but somehow families of 7 still manage through it and we shouldn’t follow Musk’s financial rules for advice here.

How do large families sustain themselves financially?

To put it plainly, they take on more risk and put themselves in jeopardy. They tend to not pay for child care, don’t oversupply on food or clothing, inherit a lot from their siblings, don’t invest in their children’s futures as much as they can with less, eat McDonalds, don’t bother dealing with health care or medical costs that can come up, and babysit themselves which is dangerous.

Many young parents in particular haven’t educated themselves properly on raising a child and get into debt leading themselves into a worse off situation.

Although there’s no secret hand book to raising a kid on a perfect budget, supporting yourself first is a must before you go out and have a munchkin to take care of that can be more expensive than yourself.

Take care of yourself to take care of others.

If you’re digging yourself into a hole due to sky-high property taxes, need some assistance with lowering your housing bill, and your job allows you the comfort to move to a less expensive location, check out these places in the U.S. to get the most bang for your buck for a home while raising a child :

Since housing is the most expensive purchase one will make in their lives, it is crucial to take this first step. It is an illiquid asset that cannot be reversed.

With homeowners 40x wealthier than renters, being strategic about your residence is key to growing a family and plan on thinking long-term for the largest ROI. If you don’t plan on living there for more than 5 years, it’s money down the drain and not an investment.

With steep prices and investors drops, the market is starting to resemble pre-pandemic times. As the seller’s market cools down for homes, not rentals, this is your time to get in on the action before the winter rolls around and people start hunting for basements and backyards to put their jacuzzi in and play with snow. A home is a sanctuary and a place your children will cherish.

Whatever stage you are in life, make sure to enjoy it with someone. Loneliness is a leading cause of death for retirees. Never regret meeting that person.

For ultimate happiness and prosperity, don’t do it solely for the money.

Instead, always keep it in the back of your mind at all times to propel your future and community.

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