Americans can achieve their ideal living conditions on an average salary — and a million dollars.
Achieving the once standard American Dream now costs more than $1 million more than the average individual earns in their lifetime, according to a new study.
Owning a house, a car, a pet and sending two children to school – once considered the basic landmarks of life in the US – cost $3,455,305, a study by Investopedia found.
The average American – across all levels of education – earns only about $2.3 million, according to the research.
“But rising costs have made the typical ‘American Dream’ out of reach for many,” the researchers wrote.
Inflation and high interest rates are two of the main drivers of the gap between individuals’ wages and their bills.
Fortunately, the average rate on a 30-year mortgage eased to 7.03% this week, but not before it hit a record high of 7.79% in October — making the average lifetime cost of a home about $796,998.
Having a child at this age will cost almost as much as a house, research says.
It costs an average of $576,896 to raise two children to age 18. Getty Images/iStockphoto
Raising two children to age 18 now costs an estimated $576,896 — but the true price may be higher as it becomes more common for children to stay with their parents into adulthood.
Most of that half a million dollars comes in the form of education bills, about $42,070 a year for in-state colleges. Plus their birth alone could ring as much as $5,708 out of pocket for two children, for those enrolled in a large group health plan.
“If your family includes furry friends, you could be looking at up to $67k in lifetime costs for a dog and a cat that each live 15 years,” says Investopedia.com.
Owning a home through a mortgage can run a family about $796,998. UCG/Universal Image Group via Getty Images
Here are some other massive cost-of-living price tags:
- wedding and engagement rings: $35,800
- car: $271,330
- health insurance: $934,752
- retirement: $715,968
- funeral: $7,848
Economists are calling for a rate cut by the Federal Reserve to combat stubborn inflation, fearing that without it the economy could be headed for recession.
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Source: thtrangdai.edu.vn/en/
