The cost of achieving key life milestones in the US has risen to about $5.3 million, outpacing wage growth and leaving even college graduates with a shortfall of $1.2 million.
01Summary
- 01Investopedia’s annual analysis found the total cost of eight life milestones rose 4.1% from last year to $5.32 million.
- 02Homeownership remains the biggest expense at $1.28 million, up 7.7% year-on-year.
- 03Raising two children through college rose nearly 9% to about $954,000, driven by childcare and tuition costs.
- 04A record 22.7 million renter households were cost-burdened in 2024, spending over 30% of income on rent and utilities.
- 05A full-time worker with a bachelor's degree earns an estimated $3.6 million from ages 25 to 64, falling $1.2 million short of the $5.3 million dream.
02Why it matters
This matters because housing and child-rearing costs are rising faster than wages, making the traditional American Dream unattainable for many—even those with a college degree. The widening gap affects financial planning, homeownership prospects, and retirement security for a broad swath of the population.
Pulse AIAsk about this story
Answers are generated by AI from the story summary; they are not investment, health or legal advice.
