An American can achieve his ideal living situation with an average salary and one million dollars.
According to a new study, achieving the once-standard American dream now costs more than $1 million more than the average individual earns in a lifetime.
Owning a house, a car, a pet and sending two children to school (once considered basic milestones of life in the United States) costs a whopping $3,455,305, according to a study by Investopedia.
According to research, the average American, at all educational levels, only raises approximately $2.3 million.
“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 disjunction between an individual’s paycheck and their bills.
Fortunately, the average rate on a 30-year mortgage dropped to 7.03% this week, but not before hitting its highest rate in history of 7.79% in October, making the average cost of living for a house is approximately $796,998.
Having children today will cost almost as much as a house, research claims.
It costs an average of $576,896 to raise two children until they turn 18. Getty Images/iStockphoto
Raising two children to the age of 18 is currently estimated to cost $576,896, but the actual price could be much higher as it becomes more common for children to live with their parents well into adulthood.
A good chunk of that half-million dollars comes in the form of education bills, roughly $42,070 a year for state universities. Additionally, their births alone will likely cost $5,708 for two children, for those enrolled in a large group health plan.
“If your family includes a furry friend, you could face up to $67,000 in lifetime costs for a dog and cat that each live for 15 years,” states Investopedia.com.
Owning a home through a mortgage can cost a family approximately $796,998. UCG/Universal Images Group via Getty Images
Here are some other huge cost of living price tags:
- wedding and engagement ring: $35,800
- car: $271,330
- health insurance: $934,752
- retirement: $715,968
- funeral: $7,848
Economists are calling for an interest rate cut from the Federal Reserve to combat persistent inflation, fearing that without one the economy could be headed for a recession.
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Source: vtt.edu.vn