No Kids, More Cash: Enter Your Cool & Single Rich Aunt/Uncle Era!

The “rich auntie” concept continues to dominate the internet. It revolves around a woman who is financially independent, has an amazing sense of style, is extremely supportive, and, most importantly, is childfree. Kendall Jenner, a member of the Kardashian family, exemplifies the concept perfectly –  living a glamorous life while hanging out with her sister, Kylie Jenner’s child, without the added responsibility of parenting. 

In Malaysia, this viral TikTok concept is speaking to a growing number of individuals choosing to live a life without kids. Rather than it being about them rejecting the notion of having kids, it’s more about them embracing the freedom, financial autonomy and self-love that comes with it. 

The Department of Statistics Malaysia (DOSM) revealed that the total fertility rate fell below the replacement level of 2.1 in 2023 (1.7 children). This is a drastic decline from the 2.1 children per woman fertility rate in 2010. 

The rising cost of parenthood in Malaysia is driving this demographic shift. That is, in urbanised areas like Klang Valley, a child typically spends about RM6,420 per month, while a child living in less urbanised areas like Kedah spends around RM5,130 per month on essential expenses. 

While cultural expectations around marriage and family have evolved in Malaysia, the pressure of living in a collectivistic society means that one is only living a successful life if they’re married with a child, or maybe two, still exists.

This really forces us to re-evaluate our perspective. Does skipping parenthood truly make you the cool rich aunt or uncle you so desire in Malaysia?  

Raising a child is not “priceless”, in fact, it comes with a hefty price tag

From feeding the child to buying them clothes, paying for their tuition and school fees, bringing them for a swimming lesson, sending them to the clinic when they’re sick, to hiring a caretaker for them, raising a child is definitely not a “priceless” experience. 

AIA Bhd estimated that to raise a child in Malaysia would set the parents back by RM400,000 to RM1.1 million, from delivering the child all the way to the child getting their university degree! 

Read this article to find out more about how much it costs to have a baby in Malaysia! 

A table that shows the lowest costs of raising a child (According to AIA Bhd)

Category	Estimated costs
Childbirth at government hospital. Includes: - Pre-natal checkups - Normal delivery/Caesarean delivery - Confinement lady	RM 5060 - RM 7,000
Primary and secondary school education. Free education in government schools but subject to: - School uniforms - Exercise books - Day-to-day expenses	RM 200 per annum
University education at a local university	RM 400,000

Imagine multiplying that by two or three kids, you’ll easily be looking at a seven-figure family expense when deciding to raise a child! 

Now, take away these costs = more financial flexibility!

By taking away the huge financial commitment of raising a child, this leaves you much more room for your personal finances to be flexible! By having more financial flexibility, you can redirect your finances towards:

• Perhaps putting it as down-payment on a house you’re looking at! 
• Starting your own business or investing in another business 
• Did I tell you about the crazy adventures you can go on as you travel around the world? 
• Instead of retiring at 65, you can retire much earlier without a child to worry about
• Greater risk, greater reward! You’re more likely to invest aggressively 

Think about it; a very conservative estimate of raising a child a month is about RM1,500. Imagine taking that amount and investing it at a 5% annual return, this could grow to more than RM600,000 in 20 years!  

Making career and lifestyle decisions without worrying

I’m not here trying to discourage you from having a child. However, having a child does hinder the choices you make for your career. For instance, you might be offered a job in Dubai that includes a much higher salary and relocation package. However, if you have a child, making the decision to move to Dubai is not as easy. You’ll have to worry if the shift would affect your child’s well-being, education and social life, which could stop you from choosing the seemingly better option. 

The adaptability that comes with a child-free life is a huge advantage for Malaysia’s fast-changing job market. You’ll be more inclined to change careers without worrying about income stability, take much greater professional risks, or even pursue further education! With this adaptability, you’re sure to benefit vastly financially! 

Spending less on houses

Needing a bigger home with more rooms, easy access to schools, or even close proximity to grandparents for support are just some of the few considerations for parents when choosing a house. But these considerations also come at a price. More often not, a home with more rooms and easy access to schools is usually found in more expensive areas with a much higher rental or buying price for the house. 

By being a childfree individual, you’re not limited to the few housing options that fit these considerations. Instead, you can opt for smaller and low maintenance apartments or even choose a location that is more lifestyle-focused (closer to malls, restaurants or grocery stores) over school districts. 

Furthermore, with more individuals living in the same house, this would also mean higher utility bills. 

So what’s the financial downside of being childfree?

In a lot of traditional Asian households, parents see their children as a long-term investment. That is, the unspoken expectation that their child will support them during their retirement years. They’re taught to “balas jasa” (or repay) their parents’ sacrifices, which is why most parents are able to justify the major expenses of raising their children – including private education or overseas university fees.  

Another minor financial setback of being childfree is not being able to enjoy the tax reliefs offered by the Malaysian government. From child education relief to relief for childcare centres to EPF and insurance reliefs, a childfree individual would not benefit from these tax reliefs, which might slightly increase your overall tax burden. 

That cool rich aunt life is more than just being childfree

Choosing to be childfree in Malaysia is now a bold financial strategy for many, rather than merely a lifestyle choice. 

It is undeniable that having children as a strategy for retirement still lingers in our community.  The evolving cultural expectations and increased cost of raising kids and the cost of living are now pushing more Malaysians to rewrite the narrative. 

Being childfree is about reclaiming your time, finances and freedom to live life on your own terms. It means being able to put aside the RM1,500 monthly on things that actually matter more to you! One clear thing about not having a child is that you have plenty of options to work with! 

At the end of the day, being childfree doesn’t doom you to be a lonely cat lady living with 10 cats in the apartment (if that’s your thing, go for it!). It just simply means you have to plan differently. Yes, you won’t benefit from a child’s support (whether it’s emotional or financial), but it does give you more available resources to support yourself! 

Whatever the decision is, the goal remains the same. Build a life that resonates with you and does not take away what you value or reflect who you are.

Read more: How Much Does It Cost To Have A Baby In Malaysia?