WealthOct 20, 2024
The American Dream Costs $4.4 Million 💵
What We’re Showing
This graphic shows the estimated cost of the American dream per household over the course of their lifetime, based on analysis from Investopedia.
Key Takeaways
- The cost of the American dream exceeds the average lifetime salaries of both men ($3.3 million) and women ($2.4 million) with a Bachelor's degree.
- For a 20-year retirement, it takes $1.6 million in savings, assuming a 4% annual withdrawal rate and inflation averaging 2.5% per year.
- As a core part of the American dream, owning a home has increasingly grown out of reach, with 77% of U.S. households now unable to afford a median-priced home.
Dataset
American Dream | Lifetime Cost | Description |
---|---|---|
Retirement | $1,599,995 | Recommended min savings for 20 year retirement. |
Owning a new car | $811,440 | Total of new car payments for adults (fuel/maintenance not included) |
Wedding | $44,300 | Ceremony, reception, and engagement ring. |
Raising two children plus college | $832,172 | Raising children to age 18 and paying for four years at a public college each. |
Owning a home | $929,955 | Buying an existing single-family home with a 30-year mortgage (20% down payment). |
Pets | $36,626 | Expenses of owning one dog and cat. |
Yearly vacation | $179,109 | Annual vacation from ages 22-84. |
Funeral | $8,453 | Includes viewing and burial. |
American Dream Total | $4,442,050 |
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