Living the American Dream Now Comes With a $5 Million Price Tag
The cost of achieving the so-called American Dream has climbed above $5 million, according to a new analysis from Investopedia. The figure, which represents lifetime spending on eight traditional middle-class milestones, is up nearly $600,000 from last year and almost 50% higher than two years ago.
The report draws on government data, industry figures, and surveys of more than 1,200 adults to calculate the expenses tied to what Americans most often associate with success. First defined in 1931 by historian James Truslow Adams as the pursuit of a better life, today’s version carries a record-high price tag.
The breakdown for 2025 includes: retirement ($1.64 million), healthcare ($414,208), homeownership ($957,594), raising two children and paying for college ($876,092), cars ($900,346), vacations ($180,621), pet ownership ($39,381), and a wedding ($38,200). Together, they total about $5.04 million.
By comparison, the average American with a bachelor’s degree is projected to earn just $2.8 million over a career—less than half of what’s required. Dual-income households with higher education stand the best chance of reaching the benchmark, while others may find it increasingly unattainable.
Rising housing costs, tuition, inflation, and the addition of healthcare expenses drove much of this year’s increase. Retirement remains the largest single cost.
Despite the daunting numbers, optimism endures: nearly 70% of Americans believe they will achieve key aspects of the Dream. Experts note that its meaning is ultimately personal and shifting—less about a dollar figure, and more about how individuals define success in today’s economy.
