Elon Musk's Suggestion to 'Simply Have Children': A Wealthy Perspective on Starting a Family

Elon Musk’s Take on Starting a Family

Elon Musk is known for his straightforward approach to family planning: he encourages people to have children without delay. At a recent event, he advised young people to “start immediately” when it comes to having a family, dismissing concerns about financial readiness. Musk believes that worries about expenses are overblown, assuring that things will work out in the end. His mother, Maye Musk, has echoed this view, suggesting in a December interview that those anxious about money should simply “skip the appetizers and have the baby,” implying that cutting out small luxuries is enough to make room for children.

The Reality of Parenting Costs

However, this advice clashes with the financial realities faced by most families today. The average yearly expense for raising a child under five has climbed to $27,700, marking a 4.5% increase from the previous year. These costs go far beyond forgoing occasional restaurant meals—they include essentials like diapers, formula, and childcare, which can rival the cost of a mortgage. Critics point out that it’s not entertainment expenses that strain budgets, but necessities such as $400-a-week daycare fees.

For someone with Musk’s immense wealth, the financial equation is entirely different. While Musk’s own upbringing involved modest living arrangements, the soaring costs of childcare today make his advice seem out of touch. Most Americans are forced to carefully manage every dollar just to meet basic needs, making the suggestion to ignore financial worries feel disconnected from their daily struggles.

Why the Advice Falls Flat

Many see Musk’s recommendations as unrealistic, akin to offering a luxury coupon in a discount store. For the average household, skipping small indulgences does little to address the overwhelming costs of raising children. As one social media user bluntly remarked, “Says the man who has billions of dollars!” This highlights the gap between the billionaire’s perspective and the financial pressures facing typical parents.

Data supports this disconnect. According to a Pew Research Center survey, the percentage of childless American adults under 50 who said they were unlikely to ever have children rose from 37% in 2018 to 47% in 2023. The main reason cited was the inability to afford children. This isn’t a rejection of family values, but a practical response to rising costs—expenses for raising a child have jumped more than 35% in just two years.

While Musk urges people to have children, millions are postponing parenthood due to financial strain. His advice, whether inspired by his mother’s resourcefulness or his own ambitions, doesn’t resonate with those facing economic hardship. Telling people to “start immediately” overlooks the real barriers they face.

Musk’s Wealth Versus Market Reality

The credibility of Musk’s advice is best measured not by his words, but by the performance of Tesla, the company that built his fortune. Tesla’s stock has dropped nearly 10% this year, trading around $405—a notable decline from its recent highs, signaling investor uncertainty about the company’s future.

Looking closer, Tesla’s valuation is steep, with a trailing price-to-sales ratio of 16. This high multiple means investors expect continuous growth and flawless execution. Any slip in sales or profits could quickly deflate the stock’s value.

Meanwhile, Musk’s personal net worth stands at $242 billion. The contrast between his immense wealth and the challenges facing his company highlights the disconnect in his advice. While Musk can absorb any financial risk, most parents and investors cannot. The market’s skepticism toward Tesla is a reminder that the average person doesn’t have the safety net of a billionaire.

What Really Matters: Measuring the Impact

The effectiveness of Musk’s advice isn’t determined by speeches or interviews, but by real-world outcomes. To see if his message has any influence, consider three key indicators that bridge the gap between billionaire advice and everyday life:

• Shifts in Family Planning: The advice only matters if it leads to more people having children or changes the conversation around starting a family. So far, the trend is clear: financial concerns are causing young adults to delay or forgo parenthood. The share of childless adults under 50 who say they’re unlikely to have children has risen to 47% in 2023, according to a Pew Research Center survey. If Musk’s words were making a difference, this number would be falling, not rising.
• Tesla’s Performance: The health of Tesla reflects broader economic pressures. The company’s stock is down nearly 10% this year, despite a high valuation. This signals that investors are wary of easy growth—a sentiment that mirrors the uncertainty families feel about their own financial futures.
• Consumer Demand for Family Essentials: The real test is whether families can afford the basics. With the cost of raising children and daycare soaring, any reduction in spending on essentials like baby products or childcare will show up in sales data. If demand drops, it confirms that Musk’s advice is out of touch. If it holds steady, it suggests families are finding ways to cope, regardless of billionaire opinions.

Ultimately, the real measure of advice like Musk’s is in the details. While “just have kids” sounds simple, the reality is far more complex. Watching trends in birth rates, Tesla’s stock, and family spending will reveal whether his words have any real impact—or if they remain just another example of billionaire rhetoric disconnected from everyday life.