For most Americans, the dream of building wealth is becoming increasingly elusive. A recent LendingTree survey of 2,000 adults reveals that optimism about future financial security has declined across nearly every demographic since 2023. Parents, in particular, are bearing the brunt of this decline.
According to the report, parents with children over 18 experienced a nine-point drop in confidence about building wealth, while those raising younger children registered a five-point decline. Overall, just 38 percent of adults who do not consider themselves wealthy today believe they ever will be, down from 41 percent two years ago.
The Exception
Interestingly, one group is bucking the downward trend—adults without children. In 2025, 42 percent of child-free Americans said they were optimistic about achieving wealth, a slight uptick from 41 percent in 2023. At first glance, the increase appears modest, but against the backdrop of widespread financial pessimism, it underscores a striking divide in outlook.
The explanation, researchers suggest, lies in the rising cost of raising children. Families now spend nearly a quarter of their income on child-related expenses, with child care representing the single largest burden. Nationally, day-care costs have risen more than 50 percent since 2023, driven by inflation, higher wages for workers, and a shortage of providers.
“Most Americans are on a budget and don’t have a ton of wiggle room. When a big cost like child care shoots up by 40 percent or more, it can be a real crisis,” said Matt Schulz, LendingTree’s chief consumer finance analyst, in the report.
The High Cost of Raising Children
A separate LendingTree study found that raising a young child in need of full-time care now costs close to $30,000 annually—an increase of 36 percent since 2023. Over 18 years, that number can reach or surpass $300,000 depending on the state. In Hawaii, the projected cost exceeds $362,000, the highest in the nation.
Even parents with steady incomes feel the strain. Essentials such as rent, food, transportation, clothing, and insurance further erode their ability to save or invest. For many households, wealth-building goals are taking a back seat to the immediate demands of monthly bills.
Redefining “Wealth”
As financial pressure mounts, Americans are also redefining what it means to be wealthy. Instead of linking it to luxury lifestyles, more than half of respondents now equate wealth with financial security or simply living without constant money stress. Yet despite this redefined benchmark, only 21 percent of Americans today consider themselves wealthy.
This has created a paradox. A majority—57 percent—believe they will eventually outearn their parents. At the same time, they admit that building wealth has become harder than ever before.
A Generational and Cultural Divide
Younger adults, particularly Gen Z, remain the most hopeful about their financial futures. However, even their optimism has dropped by seven points since 2023. Baby boomers, meanwhile, worry about the stability of Social Security and report sharp declines in confidence as well.
The optimism of child-free adults highlights an uncomfortable cultural question: if confidence in financial futures increasingly hinges on whether one has children, what does this mean for family life, fertility rates, and long-term economic stability?
While the numbers suggest that not having children makes wealth accumulation easier, they also underline the heavy financial toll of raising the next generation.
The American Dream in Transition
The findings reflect a broader tension at the heart of the American dream. On one hand, Americans continue striving to work, save, and invest in hopes of surpassing their parents’ standard of living. On the other hand, the soaring cost of parenthood is reshaping who can realistically hold onto that dream.
As Schulz noted, “Slow and steady investment in the stock market is a powerful wealth-building strategy. This isn’t about day trading, crypto or meme stocks. Simply put away money consistently over time and give the magic of compounding a chance to work.”
Yet for millions of parents already living paycheck to paycheck, that advice feels unattainable. For them, wealth is no longer defined by abundance, but by survival, stability, and the hope that their children will one day inherit better opportunities.
According to the report, parents with children over 18 experienced a nine-point drop in confidence about building wealth, while those raising younger children registered a five-point decline. Overall, just 38 percent of adults who do not consider themselves wealthy today believe they ever will be, down from 41 percent two years ago.
The Exception
Interestingly, one group is bucking the downward trend—adults without children. In 2025, 42 percent of child-free Americans said they were optimistic about achieving wealth, a slight uptick from 41 percent in 2023. At first glance, the increase appears modest, but against the backdrop of widespread financial pessimism, it underscores a striking divide in outlook.
The explanation, researchers suggest, lies in the rising cost of raising children. Families now spend nearly a quarter of their income on child-related expenses, with child care representing the single largest burden. Nationally, day-care costs have risen more than 50 percent since 2023, driven by inflation, higher wages for workers, and a shortage of providers.
“Most Americans are on a budget and don’t have a ton of wiggle room. When a big cost like child care shoots up by 40 percent or more, it can be a real crisis,” said Matt Schulz, LendingTree’s chief consumer finance analyst, in the report.
The High Cost of Raising Children
A separate LendingTree study found that raising a young child in need of full-time care now costs close to $30,000 annually—an increase of 36 percent since 2023. Over 18 years, that number can reach or surpass $300,000 depending on the state. In Hawaii, the projected cost exceeds $362,000, the highest in the nation.
Even parents with steady incomes feel the strain. Essentials such as rent, food, transportation, clothing, and insurance further erode their ability to save or invest. For many households, wealth-building goals are taking a back seat to the immediate demands of monthly bills.
Redefining “Wealth”
As financial pressure mounts, Americans are also redefining what it means to be wealthy. Instead of linking it to luxury lifestyles, more than half of respondents now equate wealth with financial security or simply living without constant money stress. Yet despite this redefined benchmark, only 21 percent of Americans today consider themselves wealthy.
This has created a paradox. A majority—57 percent—believe they will eventually outearn their parents. At the same time, they admit that building wealth has become harder than ever before.
A Generational and Cultural Divide
Younger adults, particularly Gen Z, remain the most hopeful about their financial futures. However, even their optimism has dropped by seven points since 2023. Baby boomers, meanwhile, worry about the stability of Social Security and report sharp declines in confidence as well.
The optimism of child-free adults highlights an uncomfortable cultural question: if confidence in financial futures increasingly hinges on whether one has children, what does this mean for family life, fertility rates, and long-term economic stability?
While the numbers suggest that not having children makes wealth accumulation easier, they also underline the heavy financial toll of raising the next generation.
The American Dream in Transition
The findings reflect a broader tension at the heart of the American dream. On one hand, Americans continue striving to work, save, and invest in hopes of surpassing their parents’ standard of living. On the other hand, the soaring cost of parenthood is reshaping who can realistically hold onto that dream.
As Schulz noted, “Slow and steady investment in the stock market is a powerful wealth-building strategy. This isn’t about day trading, crypto or meme stocks. Simply put away money consistently over time and give the magic of compounding a chance to work.”
Yet for millions of parents already living paycheck to paycheck, that advice feels unattainable. For them, wealth is no longer defined by abundance, but by survival, stability, and the hope that their children will one day inherit better opportunities.
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