How much does it cost to live the ‘American Dream?’ One estimate says $3.4M

The cost-of-living crisis is pushing the American Dream out of reach for many Americans.

by Alejandra O’Connell-Domenech | Dec. 12, 2023

Eric Whinnery, right, his wife Courtney, left, and their daughter Lyra, 21 months, pose in front of their home, Friday, Sept. 3, 2004, in Traverse City, Mich., which they closed on this summer. Many people in Michigan and elsewhere have joined the ranks of homeowners in recent years, spurred in part by low interest rates. The benefits of home ownership are many: tax breaks, equity, a sense of pride. But the switch from renter to owner usually means a heftier monthly housing payment _ sometimes much heftier. (AP Photo/John L. Russell)

Story at a glance

A new analysis from Investopedia found that the “American Dream” now costs $3,455,305.

For many, the American Dream includes getting married, buying a home and having children.

But the rising cost of living is making the classic image of success in the United States something of the past.

Rising costs have pushed the “American Dream” out of reach for most Americans, according to a new analysis from Investopedia.

Common milestones associated with success in the United States like marriage, children, homeownership, cars and healthcare are estimated to cost $3,455,305 throughout a person’s lifetime, according to the financial news site.

Meanwhile, the average lifetime earnings of an American with a bachelor’s degree is about $2.3 million, according to data from the Georgetown University Center on Education and the Workforce.

Those with less education can expect the life associated with the American Dream to be further out of reach.

For many people, the American Dream involves getting married. And weddings have gotten pricey.

For its analysis, Investopedia used data from wedding planning website The Knot which calculated that the average cost of getting hitched is now $30,000—$2,000 more than last year.

The average cost of raising two children until the age of 18 is now estimated to be about half a million dollars, according to Investopedia.

On top of that, the site estimates that the average lifetime cost of a home with a 10 percent down payment and 30-year fixed mortgage of 7.2 percent is now about $796,998.

Investopedia also estimates that the average family can expect to spend $934,752 in health insurance over a lifetime.

In between juggling housing costs, car costs, healthcare costs, and childcare costs, Americans should expect to save at least $715,968 if they plan on living off of 80 percent of pre-retirement annual income once they retire.