Finance and Accounting Seminar -Ville Rantala (University of Miami) "Investing When Fewer Expect to Parent: Fertility Expectations and Financial risk-Taking"

We examine how fertility expectations influence financial risk-taking using demographically representative data from three countries. Childless adults of childbearing age who do not expect children are 18–32% more likely to invest in stocks than those who expect children, after controlling for personal characteristics. This result holds also when medical infertility instruments expectations. No comparable effects appear for other savings categories, and fertility expectations also predict later-life investment behavior. Households expecting children report shorter financial planning horizons, which may explain their lower risk tolerance. Our results suggest that declining fertility can increase young adults’ stock market participation through childbearing-related expectations.