Inflation is darkening America’s dreams.
It currently costs $5 million to fund eight key elements of the American Dream, including homeownership and parenting, according to a new analysis from Investopedia.
Everyone’s dreams are different. However, as Investopedia has found in compiling the September report, some human desires are universal.
In an accompanying survey, the financial journalism site asked 1,263 adults to identify goals associated with the American dream. Most people said they shared these eight aspirations.
- Retire comfortably (86%)
- Provide high quality healthcare (86%)
- Owning a house (85%)
- Raising a family (78%)
- Own a new car (72%)
- Go on holiday every year (71%)
- Pet care (66%)
- Wedding (55%)
This report clarifies the lifetime costs for each target and taps data from federal agencies, think tanks and industry groups.
Rethinking the American Dream: Degrees at Trade School and University
High school students and their parents are considering the benefits of university and university.
Here are the costs to achieve your American dreams
From maximum to minimum, the lifetime costs for each target are:
- Resignation: $1.6 million
- Home Owner: $957,594
- Owning a new car: $900,346
- Raise two children and pay for university: $876,092
- Healthcare: $414,208
- Annual leave: $180,621
- Pets: $39,381
- Wedding: $38,200
Adding them together will result in a lifetime cost of $5,043,323 to achieve the American Dream.
That’s a difficult amount considering the average American with a bachelor’s degree earns around $2.8 million in his career.
The American Dream is becoming more expensive
Last summer, on the campaign trail, presidential candidate Donald Trump pledged to “reclaim the American dream.”
However, the numbers suggest that dreams are becoming more expensive. Investopedia has found that most components of American Dream cost more than 2025 than 2024.
“You’re definitely looking at almost the full price hike, especially homeowners, children, and sending them to college,” said Caleb Silver, Chief Business Editor at People Inc. and Editor-in-Chief of Investopedia.
Investopedia is offering a lifetime supply of new cars at $900,346 in 2025, and $811,440 a year ago. Homeownership Lifetime is $957,594, up from $929,955.
But not everyone defines American dreams the same way.
Michael Strain, a senior fellow at the American Enterprise Institute and author of a 2020 book on American Dream, suggests that Investopedia may have set a bar too high.
“I don’t know if America should be equated with the lifestyle enjoyed by the top 10% of earning income,” he said.
To make you nervous, the American Dream is about a sense of upward trajectory. “Are you moving on?” he said. “Do you do better every year? Are your kids going to do better than you did?”
The key to the Investopedia report is to get people to think about how to fund their own American dreams.
“I hope people read this and think about what their dreams are in fact, so they can put a price tag on it and then come up with a real strategy that will allow them to make enough money to achieve it.”
Here is a detailed breakdown of the costs of American dreams:
Resignation: $1.6 million
According to Investopedia, $1.64 million represents the average cost of a 20-year retirement. This tab is based on average annual spending at retirement.
A year ago, Investopedia estimated the cost of resignation was just under $1.6 million.
If these numbers seem high, consider that financial advisors often instruct retirees to plan to spend only 4% of their savings on annual living expenses. 4% of $1.6 million is just $64,000.
Homeownership: $957,594
That figure reflects the average cost of buying a home and funding it on a 30-year fixed-rate mortgage, including interest, insurance, and property taxes.
A year ago, Investopedia estimated the cost of homeownership at $929,955.
The median American home prices are around $415,000, the report says. The rest of the lifetime tabs represent interest, insurance and taxes.
Owning a new car: $900,346
This figure reflects the cost of purchasing and financing a new car every ten years, between the ages of 22 and 75.
A year ago, Investopedia estimated the lifetime cost of ownership of a new vehicle at $811,440.
A survey by Investopedia found that 72% of Americans consider new cars to be a component of American dreams.
But not everyone agrees. The average US vehicle is nearly 13 years old, at record high.
Raising two children: $876,092
That figure covers the costs you pay to raise two children by the age of 18 and attend a public university for four years at a fee within the state.
The total cost of raising two children would be $645,819, Investopedia estimates estimated. College costs push numbers up well beyond $800,000.
These costs partly explain why Americans choose to have children.
Healthcare: $414,208
In previous American Dream reports, Investopedia did not include healthcare as a component. That’s not necessary, it’s not necessary, is it?
Americans need health care, but they want quality health care. Most survey respondents said access to quality healthcare is part of America’s dream.
Total represents the average lifelong medical expenses between the ages 22 and 85.
Annual leave: $180,621
Research by Investopedia shows that most Americans consider vacations to be an unnegotiable component of American dreams.
The diagram above shows one annual leave between the ages of 22 and 85, assuming that the average leave costs $2,867.
A year ago, Investopedia estimated that the life expectancy of a holiday would cost $179,109.
Pet Owner: $39,381
Two-thirds of American households have pets, and most of us consider our furry friends to be important pieces of American dreams.
The diagram above shows the lifetime costs of owning one dog and one cat, including food and health care.
Wedding: $38,200
More than half of Americans say that weddings are part of American dreams. Interestingly, wedding costs have actually been declining since 2024.
A total of $38,200 covers ceremony, reception and rings.
