Introduction
We all love our kids. They bring joy, meaning, and a surprising amount of sticky fingerprints to our lives. But if you're on the path to Financial Independence (FI), you might find yourself wondering: Just how much do these adorable little humans delay my escape from the rat race?
Don't worry—this isn't a cold calculation of "kids vs. freedom." It's more like a friendly peek at the numbers, with a wink and a nudge. Because while kids change the financial equation, they also change your heart (and your sleep schedule).
Meet Alex and Jamie
Let's meet our fictional couple, Alex and Jamie. They're 30, gainfully employed, and blissfully unaware of how much applesauce can end up on the ceiling.
ALEX
Software Engineer
JAMIE
Public School TeacherHOW MUCH THEY EARN
HOW THEY SPEND
ASSETS
Their Path to FI—No Kids
With a combined income of $184,000, moderated spending and some smart financial moves, Alex and Jamie are on track to reach financial independence in 18 years. That means retiring at age 48, with enough assets to support their $7,000/month retirement lifestyle indefinitely.
What Happens When Kids Enter the Picture?
But life has other plans. Three years later, Alex and Jamie welcome their first child. Suddenly, the financial landscape changes dramatically. Let's see what happens to their FI timeline when they add one adorable, expensive little human to the mix.
Scenario: Adding One Kid
What Changes:
- College Savings: $28,500/year for 4 years (future public college)
- Living Expenses: +$1,500/month (for diapers, childcare, and mysterious "kid stuff")
- Retirement Expenses: +$500/month (increased expenses for travel, etc)
More bedtime stories, more sticky hugs, and yes... a longer wait for financial freedom.
The Impact on FI Timeline
Bonus Round: What About Two Kids?
If Alex and Jamie decide to have a second child, the math gets even more interesting. Double the college costs, higher living expenses (+ an additional $500/month), and retirement expenses (+ an additional $500/month) push their FI timeline to 29 years—retiring at age 59.
Kids Change Your FI Journey—And That's Okay
Kids are a blessing, a challenge, and occasionally the reason you find crayons in the washing machine. Yes, they change your FI journey—but they also make the journey a lot more interesting.
Want to see how your timeline changes with kids? Try our scenario planner and model the tradeoffs for your family. And remember: the best things in life aren't always early retirement—they're the ones calling you "Mom" or "Dad."