Original Coverage & Source Attribution: newschannel9.com
WASHINGTON (TNND) — The American Dream costs $5.3 million in 2026, which is up nearly $2 million from three years ago, according to a report.
The amount is an estimated lifetime tab by Investopedia for milestones such as paying for a wedding, healthcare, and retirement; raising two kids and paying for their college; buying new cars; and owning a home, the New York Post reported.
Based on those milestones, the American Dream cost $5 million last year, $4.4 million in 2024, and 3.4 million in 2023, according to Investopedia. This year’s $5.3 million estimate is outpacing Americans’ paychecks, per the analysis.
The cost of reaching those milestones rose 4.1% over the past year, but private-sector wages and salaries grew only 3.1% during the same period, according to Investopedia’s analysis of the Bureau of Labor Statistics.
The average full-time worker with a bachelor’s degree can expect to earn a median of $3.6 million over a career spanning from age 25 to 64, which is nearly $2 million short of the needed amount to achieve the American dream, per the report. After adding 20 years of the average Social Security retirement benefit, which is $2,071 a month, that worker reaches about $4.1 million in their lifetime.
The single biggest expense is owning and maintaining a home, totaling $1.28 million today, which is up from the $1.18 million last year, according to Investopedia.
Replacing two new-model cars every five years is expected to cost nearly $1.21 million over a lifetime, with retirement likely costing roughly the same amount, the report found.
The average American is expected to spend $38,800 on a wedding this year, $40,772 to take care of a cat and a dog, and $186,999 on annual vacations over a lifetime.
Raising two kids and paying for their college increased 9% in one year, jumping from $876,000 in 2025 to $954,000 today, due to more expensive childcare and in-state higher-education tuition.
Healthcare was the only category that decreased slightly in price this year, with lifetime costs estimated at $413,000, down from $414,000 in 2025. The drop came after people aged 22 to 85 reported spending about $900 less on average on healthcare since last year, according to Investopedia.
The total percentage of U.S. adults who believe they will personally achieve the American Dream is 69%, according to a June Gallup poll.
When respondents were asked what they believe the American Dream is, a 33% plurality said, “Life, liberty and the pursuit of happiness.” The second-most popular answer was “Owning a home. Having a good-paying job with good benefits. Being able to afford some added comforts in addition to the necessities.”
