Living the American Dream is often portrayed as a life of stability, comfort, and fulfillment, but achieving that dream now comes with a hefty price tag.
From weddings to raising children, buying a home, and planning for retirement, the estimated lifetime cost to live this ideal life in the United States has reached $4.4 million.
This figure, representing a blend of discretionary aspirations and cultural milestones, underscores Americans’ growing financial challenges.
While the American Dream means different things to different people, certain milestones are commonly associated with it.
These include owning a home, driving new cars, raising children, taking annual vacations, and saving for retirement. Here’s a closer look at how these costs add up.
Saving for Retirement: $1.6 Million
Average Age: 22–65
Retirement planning forms a cornerstone of financial stability in the American Dream. Ideally, savings should begin early, growing over decades to reach $1.6 million by age 65—enough to withdraw 4% annually over 20 years, accounting for inflation.
However, many Americans fall short of this target. Only 54% of U.S. households have retirement accounts, and the average savings are just $185,000 for those approaching retirement age.
Rising healthcare costs and inflation have further complicated the retirement equation, with one in three savers believing they won’t have enough to retire comfortably.
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Owning a Home: $929,955
Average Age: 35–65
Homeownership remains a hallmark of the American Dream, but rising housing costs have made it less attainable for many. On average, purchasing and financing a home with a 30-year mortgage costs nearly $930,000, including taxes and insurance, but excluding maintenance or HOA fees.
Although the national homeownership rate stands at 65.6%, affordability challenges persist, with younger generations delaying home purchases due to rising interest rates and stagnant wages.
Raising Two Children: $832,172
Average Age: 29–53
Raising children is one of the most expensive aspects of the American Dream. The cost of raising two children to age 17 is approximately $611,694, and adding in the expense of public, in-state college tuition brings the total to $832,172.
Unsurprisingly, financial concerns are a leading reason many adults choose to forego having children altogether.
Weddings: $44,300
Average Age: 29
Marriage remains a milestone for many Americans, but the cost of saying “I do” has surged recently.
With inflation driving up prices for venues, florals, and catering, the average wedding now costs $44,300, a significant increase from pre-pandemic levels.
New Cars: $811,440
Average Age: 29–75
The cost of owning new cars throughout adulthood can approach $811,440, covering only monthly payments for two vehicles.
Other recurring expenses like insurance and maintenance further inflate this figure. Despite the enduring allure of new cars, most Americans opt for used vehicles, which are more affordable.
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Annual Vacations: $179,109
Average Age: 22–85
A week-long vacation every year between ages 22 and 85 adds up to $179,109 over a lifetime. While vacations offer a chance to relax and recharge, many Americans struggle to fit them into their budgets, prioritizing other expenses instead.
Pro tip: Travel insurance is a must to protect that expensive vacation. Here’s a list of the top travel insurers.
Owning a Dog and Cat: $36,626
For pet lovers, the combined cost of caring for one dog and one cat over their lifetimes is $36,626.
Veterinary care, food, and grooming contribute to these expenses, making pet ownership a meaningful but costly part of the dream.
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Funeral: $8,453
End-of-life expenses are an often-overlooked part of financial planning. The average funeral now costs $8,453, a figure many families struggle to cover.
Planning ahead can help ensure this expense doesn’t become a burden for loved ones.
Pro tip: Life insurance is a must to protect your family. Here’s a place to get a free, no-obligation quote.
The Rising Cost of Aspiration
The $4.4 million price tag attached to the American Dream highlights the financial hurdles facing individuals and families.
Dual-income households with Bachelor’s degrees may earn a combined $5.6 million over a lifetime, but high costs and structural challenges—such as wage disparities and inflation—make achieving the dream difficult for many.
Whether it’s scaling back on discretionary spending, investing in education, or rethinking retirement strategies, achieving the American dream may require a reimagined approach.
