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The American Dream is still inaccessible
The cost of life in the American Dream in 2024 was estimated at $ 4.4 million. This amount included expenses for a wedding, children, the purchase of their own housing and other expenses for a comfortable life, which is implied by the “American dream”. The problem is that this amount is greater than the average American earns in his entire life, Investopedia reports. We tell you why many Americans no longer want to fulfill a “dream”, which has been part of American culture for many years.
The average American will not be able to embody it, even having folded his income in his life
In September, the American financial portal Investopedia published a study in which he calculated the costs of eight important events in human life. It included pension savings, wedding expenses, raising and education of two children, the maintenance of two pets, vacation, buying their own housing and a car, as well as a funeral.
According to the portal, it is these points that are important for the embodiment of "ideal but achieved life in the United States." Journalists calculated that in 2024 the American Dream costs $ 4.4 million.
The study did not take into account the costs of food, healthcare and other basic needs. But even this amount by at least a million dollars exceeds the earnings of an average American in his life. According to the Center for Education and Labor University, a graduate of undergraduate in the United States earns about $ 2.8 million in his life. At the same time, women earn less men - 2.4 compared to 3.3 million. Partners living together can earn up to 5.6 million.
“Race inequality in the level of well -being and gender gap in wages amid the growth of the cost of life make the“ American dream ”for many less and less achievable,” the report says.
It is noted that in 2023, the American Dream became one of the most popular requests on the Investopedia website.
The “American dream” is the idea that everyone in the United States, regardless of origin and social status, can achieve success through work, freedom and class equality. It also implies the possibility of personal and economic growth, achieving life goals and promotion in society. Moreover, it has a material dimension.
Initially, the idea arose among the first European settlers of the continent. In 1931, the writer and historian James Trays Adams introduced the term “American dream” and specified that these are not just material benefits, but the opportunity to realize their abilities and get recognition regardless of origin.
And although the “American dream” never had a clear definition, since everyone puts his own significance, almost every US president promises voters that his policy will contribute to its achievement. The latter was said by presidential candidates Donald Trump and Kamal Harris .
Wedding and children
According to estimates, the average wedding in 2024 will cost 44.3 thousand dollars. This cost includes rings, marriage ceremony and reception for guests.
“The last few years, the wedding costs have been growing strongly. Due to inflation and pandemia of coronavirus, which led to a lack of labor, the cost of some wedding goods-for example, flowers-increased six times compared to 2019–2020, ”the report said.
It is noted that the average age that journalists were guided by when counting the costs of the wedding is 29 years.
The concept of the "American dream" involves the presence of at least two children. The costs of a married couple with an average income for the maintenance of two children under 17 years old were estimated at 611.7 thousand dollars. This amount will increase to 832 thousand dollars, if parents decide to give children a higher education, the report says.
The age of the parents, which journalists were guided by when counting the costs of children, is 29–53 years.
“More and more adults in the United States refuse to have children, and one of the main reasons is their financial situation. According to the Pew Research Center survey, more than half (57%) of people under 50, who do not plan to have children, said they simply did not want it. At the same time, 36% of the representatives of this group indicated that they could not afford the child, ”the report said.
I earn from 100 to 400 thousand a month I teach at the university, I work as a translator and a guide in the summer season, but I still can’t get out of loans 9 minutes of reading
House and car
Home ownership for many years was one of the main aspects related to the American Dream, Investopedia notes. The report states that most often Americans aged 35 simply arrange a mortgage and can spend about 930 thousand dollars on its repayment throughout their lives. The same amount includes insurance costs and property tax. Journalists did not consider spending at home and utilities.
“In 2023, housing insurance rates increased from 10% to 23% in some states, which even more lifted the threshold of housing ownership. Now, according to the census bureau, 65.6% of people in the United States have housing. In 2004, this percentage was higher - 69.2%, but after 10 years it fell to 63.9%, ”the report said.
The possession of two new cars implied by the “American dream” can cost a married couple of 811.4 thousand dollars. The report says that only monthly payments for new cars were taken into account to reflect a more realistic situation. This amount does not include fuel costs, registration, insurance and maintenance.
“Although most Americans have cars, most of them do not buy or do not rent new cars. The sale and rental of new cars amounted to only 29.5% of all sales of cars in 2019, according to the data of the transport statistics bureau, ”the report said.
Rest and pets
The total cost of annual weekly holidays aged 22 to 85 will be 179 thousand dollars. It is noted that in 2022, 73% of the Americans made at least one trip during the vacation.
The report says that almost two -thirds of Americans have pets. 35% have more than one pet.
Journalists calculated that the costs of one cat and dog will cost an American 36.6 thousand dollars. At the same time, journalists took into account the average life expectancy of 12.7 years for dogs and 11.2 years for cats.
My family and I live 30 thousand a month I am a military wife, and his salary is the only source of income for us and the child. We took a mortgage, we are repairing an official apartment and hard to save society 8 minutes of reading
Savings for retirement and funeral
The report says that on average, Americans can save from 22 to 65 years old, "in order to have about $ 1.6 million by the time retired." It is assumed that if you remove 4% of this amount annually (with a correction for annual inflation of 2.5%), the money should be enough for 20 years.
“ The reality is that many Americans do not have a pension account, and those who have do not have an amount of $ 1.6 million. According to the latest consumer finance study in 2022, about 54% of American families have pension accounts. As of 2022, on average on a pension account, people aged 55 to 64 are 185 thousand dollars, ”the report said.
People cannot regularly retire due to high inflation and low income. According to the AARP survey (the former American Association of Pensioners), conducted in January 2024, about 33% of Americans 30 years old and older, who regularly deposit money for retirement, said that they would not have enough money for retirement at the current level of savings.
People who live without a partner have the most difficult thing - it is noted that their financial situation is worse than that of family people. The report says that it is difficult for people with low income to postpone even on unforeseen expenses, not to mention the future pension.
The costs of the funeral were included in the cost of the “American dream” in order to remove the responsibility for expenses from future descendants. The authors of the report calculated that the funeral ceremony would cost 8.4 thousand dollars.
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Author: editors "cold" photo on the cover: Kent J. Edwards / Reuters