The American Dream has always been based on aspirations of achieving a middle-class lifestyle: a lovely home, two cars in the driveway, annual vacations, and a wide-screen TV. As times change, so do the definitions and realities of what it means to be middle class. Many middle-class families are now defining themselves as working class due to the financial restrictions they’re facing. Here are 18 ways Americans define a middle-class lifestyle and the reasons why they’re not living the dream.
Owning a Home
Homeownership has always been seen as a cornerstone of the middle-class dream and one that symbolizes stability and financial success, not to mention a secure roof over your head. The reality is that rising home prices, stagnant wages, and hefty student loan debts make it difficult for many Americans to save for a down payment or even qualify for a mortgage.
Stable Job with Benefits
A stable, full-time job with health insurance, retirement benefits, and paid time off was once a staple of middle-class living. Sadly, the gig economy, contract work, and companies reducing benefits to cut costs mean fewer Americans have access to stable, benefits-rich employment. Early retirement is no longer an option.
Affording Higher Education
Sending kids to college without accruing massive debt used to be a key part of the middle-class dream. Sadly, not so nowadays. The skyrocketing costs of higher education and student loan debt have made this increasingly challenging for many families.
Owning Two Cars
Owning reliable transportation for both partners in a household was once deemed the norm. The costs of purchasing, maintaining, and insuring vehicles have increased to such a point that many are making do with one car. It isn’t ideal for working couples with families.
Regular Vacations
Being able to take family vacations at least once a year was a fixed aspect of middle-class living at one time. High travel costs, coupled with tight budgets and limited vacation time, have made regular vacations a luxury many can’t afford. Many are opting for staycations to cut costs.
Saving for Retirement
Building a nest egg for a comfortable retirement is part of everyone’s life plan. In not doing so, certain pressures can cause people to work to a much later age than anticipated. Many Americans now struggle to save and are simply living paycheck to paycheck. They have high living costs and inadequate retirement plans, which is concerning for them.
Healthcare Accessibility
Having comprehensive health insurance and access to quality healthcare is an expectation of the middle classes, but with insurance, high deductibles, premiums, and out-of-pocket costs, healthcare can be unaffordable for many. Their struggle to pay high healthcare costs has become akin to working-class families.
Living in a Safe Neighborhood
Middle-class families were always anticipated to be residing in lovely neighborhoods with low crime rates, good schools, and community amenities. In the modern era, safe neighborhoods often come with high housing costs, pricing many out of these desirable areas. The reality is that they’re opting for less desired areas. They are more affordable.
Disposable Income
Anyone who has ever had disposable income for dining out, hobbies, and entertainment is regarded as living a comfortable middle-class life. It’s a sure sign of stability. Rising living costs and stagnant wages leave less money for leisurely spending, with any extra income going on bills.
Affording Childcare
Access to affordable, high-quality childcare is less prevalent than it used to be. Modern childcare costs can rival college tuition, making it difficult for many families to afford quality care for their children. You can’t put a price on your children, but it has become an outrageous fee.
Higher Education for Children
Every middle-class parent wants to save for their children’s college education, and at one time, this was feasible. The burden of student loan debt and high living expenses now makes it challenging to set aside enough money for future college costs. It’s a stroke of luck that younger generations are favoring vocational work over further study.
Healthy Work-Life Balance
In today’s world of flexible working, achieving a balance between work and personal life should be at its peak. Rising costs are preventing many from reducing to the four-day working week, instead continuing with long work hours, balancing multiple jobs, and coping with the stressful demands of modern life.
Home Improvement and Maintenance
Regularly updating and maintaining one’s home, when necessary, should be achievable for the middle classes, but the elevated costs for repairs and improvements mean many homes now go without the necessary upkeep. It often results in downsizing or facing large bills when further problems arise.
Owning Modern Appliances
Middle-class families have always opted for modern, reliable appliances and electronics to make home life more functional and pleasurable. While many new appliances are a must around the home in the current tech climate, the cost of modern gadgets can be too high, leading many to settle for outdated or second-hand products.
Leisure Activities
The rising costs of membership fees, equipment, and ticket prices can make these activities almost impossible nowadays. Concerts are a thing of the past with the astronomical fees attached to top artists, and even participation in sports, cultural events, and recreational activities has become too costly to maintain.
Healthy Diet and Lifestyle
We’re constantly bombarded with advertisements about healthy living, and affording fresh, healthy foods plus the necessary gym membership was once achievable. It’s no new thing that healthy foods often cost more, but transitioning to modern trends of veganism or vegetarianism is too expensive for many. This makes it harder for the middle classes to maintain the healthy lifestyle they once aspired to, and they’re turning to junk food.
Emergency Savings Fund
Putting aside a few dollars to cover unexpected expenses is a thing of the past. Many Americans now live paycheck to paycheck, with little left to save for emergencies. The high cost of living soaks up any monthly leftovers, which is why credit cards are more prevalent than ever.
Financial Security and Peace of Mind
Feeling secure about one’s financial future is an immense worry for many middle-class Americans. Economic instability, debt, and the rising cost of living create ongoing financial stress, particularly for those with children who hope to pursue studies. It does explain why many Millennials and Gen Zs are choosing to work and fund their courses, however.
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