Important Takeaways:
- The “American Dream” costs about $3.4 million to achieve over the course of a lifetime, from getting married to saving for retirement, according to a recent analysis from financial site Investopedia.
- Meanwhile, median lifetime earnings for the typical U.S. worker stand at $1.7 million, earlier research from the Georgetown University has found.
- Such figures underline the financial pressures that many families face trying to afford a middle-class life as expenses like child care, college tuition and buying a home continue to climb. The Investopedia analysis tallies the average cost of achieving other aspects traditionally associated with the American Dream, such as owning a house and raising two children to age 18.
- Another analysis, from USA Today, found that funding the American Dream costs about $130,000 a year for a family of four. Median household income stands at about $74,450, according to the Census Bureau.
- Here’s how much Investopedia estimates a family must spend to afford some of the hallmarks often associated with the American Dream. Some costs might be lower or higher, depending on a family’s goals.
- Hospital birth, average out-of-pocket costs for people with health care: $5,708
- Wedding and engagement ring: $35,800
- Raising two children to 18 years old: $576,896
- 10 car purchases over a lifetime: $271,330
- One year of college for two kids: $42,080
- Average cost to buy a home, including lifetime mortgage payments: $796,998
- Pets: $67,935
- Health insurance from ages 26-65: $934,752
- Retirement: $715,958
- Funeral costs: $7,848
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