How Much It Costs To Live The American Dream

Living the American Dream is the ultimate goal for many folks, but it’s getting so expensive, most of us can’t afford it, new research reveals. According to a new analysis by GoBankingRates, a household would have to pay more than $150-thousand a year to achieve the dream in 29 states. So what does that money get you?

  • Pretty much just the basics. GoBankingRates defines the American Dream as getting married, raising two kids, owning a home, a car and a pet.
  • Hawaii is the most expensive state, where it will cost $260,734 a year to live the American Dream, while Mississippi is the least expensive and it’ll run you $109,516.
  • Illinois is right in the middle, the 26th least expensive of the 50 states. Here’s how the costs break down there:
    • Median home price: $255,278
    • Annual childcare costs: $24,174
    • Annual mortgage costs: $21,401
    • Car costs: $8,709
    • Grocery costs: $8,143
    • Healthcare costs: $7,021
    • Utilities costs: $5,278
    • Education costs: $2,475
    • Pet costs: $1,170
    • Total annual costs: $78,369
    • Full cost of the American Dream: $156,739

According to a report from Investopedia, over a lifetime, the American Dream will cost you $3.4 million. That’s a lot more than the $2.3-million they say the average American earns in a lifetime. Here’s their breakdown of what that $3.4-million pays for:

  • Lifetime costs of health insurance: $934,752
  • Average home cost, plus mortgage interest: $796,998
  • Cost of raising two children: $576,896
  • Lifetime car costs: $271,330
  • Lifetime costs of pet care: $67,935
  • College costs: $42,070
  • Wedding and engagement costs: $35,800
  • Cost of two baby deliveries: $5,708
  • Retirement costs: $715,968
  • Funeral costs: $7,848

Source: USA Today


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