The American Dream Ain’t Cheap
Bubba
13 Sep
A growing number of Americans feel it’s harder than ever to achieve the American dream, and the latest research suggests they might be right. (Investopedia)
Chart: Investopedia
A new Investopedia report: The cost of achieving the American dream is estimated at $4.4 million over a lifetime.
Saving for retirement is projected to require $1.6 million in retirement savings, though many Americans fall short, with the average retirement account balance for 55- to 64-year-olds being $185,000.
The average cost of a wedding, including the ring, ceremony, and reception, is $44,300.
Raising two children, including sending them to college, costs $832,172.
The average cost of owning a home with a 30-year mortgage is $929,955, not including maintenance or other costs.
Maintaining two new cars throughout adulthood costs $811,440.
Taking a yearly vacation from age 22 to 85 costs approximately $179,109.
Owning a dog and a cat for their lifetimes costs $36,626.
The average cost of a funeral is $8,453.
A Wall Street Journal/NORC poll from August: Only about one-third of Americans in 2024 believe the American dream still holds true, down from over half in 2012.
Connecting the dots: There’s a clear educational divide when it comes to who makes enough money to afford the American dream.
The average U.S. household with two earners holding Bachelor’s degrees earns $5.6 million over a lifetime, according to a Georgetown University Center on Education and the Workforce report.
Households where both earners do not hold college degrees can be expected to have combined lifetime earnings of approximately $3.2 million.
62% of Americans don’t have college degrees.
Big picture: The impacts of the educational divide are growing, and go beyond money.
Bubba’s Two Cents
The growing divide between “winners” and “losers” is at the heart of so much of U.S. politics these days. Whether it's MAGA conservatives attacking elites or democratic socialists railing against corporations, the idea that the system is failing us is driving movements on both sides. And the college-educated vs. non-college split is an important extension of this trend.
