Is the American Dream Still Possible? This Money Expert Weighs In

Core Insights - The American Dream, traditionally associated with financial stability and homeownership, is increasingly perceived as unattainable for many individuals today [1] Economic Challenges - Rising costs, reliance on debt, and economic uncertainty are identified as the primary reasons making it harder for individuals to achieve financial milestones [3] - Median household income has increased to $80,610 in 2024 from $21,650 in the 1980s, but this figure is misleading when considering the rising costs of housing, education, and childcare [4] Debt Burden - Credit card interest rates are currently between 21% and 24%, with the average American holding over $6,700 in credit card debt, which disproportionately affects younger generations [5] - This debt prevents younger individuals from investing or saving, forcing them to focus on bill payments and interest [5] Systemic Issues - Financial challenges are not solely due to individual choices; systemic issues like wage stagnation, wealth inequality, and policy uncertainty significantly contribute to the current economic landscape [6] Housing Market - The median home price has increased from 2.2 times the median household income in the 1980s to 5.2 times today, making homeownership much less accessible [7] Education Costs - Tuition for private colleges has risen from approximately three months' worth of income in the 1980s to about six months' worth today, while the value of degrees is declining due to increased accessibility and alternative job opportunities [7] Childcare Expenses - Childcare costs have escalated from 1% of median income in the 1980s to around 16% per child per year, representing a significant financial burden for working families [7]