The financial media site Investopedia has done the math and calculated that achieving those milestones now costs a staggering $4.4 million—over $1 million more than most Americans will make in their lifetime, according to the researcher.  

To put that into context, the top 10% of U.S. households have a median net worth of about $3.8 million, according to the Federal Survey of Consumer Finances for 2022.

Although the American Dream is probably out of reach for the average singleton, the researchers note that it’s “not out of line with what a dual-income household might earn.”

The American Dream cost

Retirement: $1,599,995
Owning a home: $929,955
Raising two children plus college: $832,172
Owning a new car: $811,440
Yearly vacation: $179,109
Wedding: $44,300
Pets: $36,626
Funeral: $8,453

Total: $4,442,050

Perhaps surprisingly, your retirement will be the biggest expense, accounting for $1.6 million of that $4.4 million total. 

The report noted that Americans need to start saving from the moment they land their first job out of college at 22 years old and continue saving until they reach 65 in order to retire comfortably (or pay for assisted living later in life).

That is, if they want to be able to live off the recommended 4% withdrawal each year—or roughly $64,000 for 20 years.

The second most significant expense for those wishing to live the American Dream is the mansion at $929,955.

It’s worth noting that the average American will actually fork out around $400,000 for their family home. The rest of the $930,000 comes from 30 years’ worth of interest, insurance, and taxes.

However, the report highlights that the total sum could be even higher if the property needs any maintenance repairs over its lifetime. 

Owning a pet will also set the typical U.S. household back a significant sum, at $36,626 for a dog or a cat, according to the researchers. 

Then there’s the price of having children, which dwarfs the cost of fur babies: Raising two kids through to age 17 costs about $611,694. Add the cost of college and that figure rises to $832,172. 

Realistically, the price tag is probably even higher as teenagers today generally stick around the family home well into their twenties.

The American Dream is dead

With the American Dream costing much more than the average person will ever earn over a lifetime, it’s no wonder that an increasing majority feel it’s completely out of reach.

Separate research has highlighted that barely more than a quarter of Americans say the American Dream still holds true—about half as many as in 2010.

Donald Trump promises to bring back the American dream “bigger, better, and stronger than ever before” if he wins next month’s election. However, he will have a big job convincing Gen Z.

Just 14 years ago, research from ABC News and Ipsos found that 56% of 18- to 29-year-olds believed in the American Dream.

But since then, spiraling inflation and living costs have made adulthood milestones like getting on the property ladder increasingly tough. 

At the same time, competition for jobs has increased, wages have stagnated—and then there was a global pandemic that put a nearly three-year pause on life added to the mix. 

Now they’re not feeling so bright-eyed about the future—just 21% of young people today think the American Dream is achievable.