Last weekend, when I went groceryshoppingand had to part with a chunk of money, it suddenly hit me how expensive everything is getting. I mean, you work your back off every day to earn money, and then you lose half of it purchasing regular things. Sounds unfair, doesn’t it?
More info:YouTube
This post may includeaffiliate links.
RELATED:
Retirement is increasingly becoming a luxury many American workers cannot afford. With rising housing costs and medical expenses, millions of older Americans can’t stop working. The sad truth is that only 40 percent of men who are regularly saving for retirement believe they are saving enough. Unfortunately, for women, the number is only 30 percent.
As you scroll through the list, you will realize that some of these things are quite essential to lead ahealthyand satisfied life for the middle class. To get a deeper understanding of the rising cost of these daily things,Bored Pandagot in touch withMadhura, who was a student of economics and also has over 2 years of experience working in the financial sector.
“Additionally, housing costs have surged, making it increasingly difficult for middle-class families to afford homes and maintain their standard of living. Tariffs have also led to higher consumer prices as businesses pass on the costs of imported goods to consumers,” Madhura added.
Financial experts generally suggest setting aside three to six months’ worth of your living expenses in an emergency fund. However, nearly 37% of Americans say they couldn’t afford an emergency expense over $400, and shockingly enough, 21% of people have no emergency savings at all.
The average United States home value is $357,469, which increased a whopping 2.5% over the past year. This has also impacted the age of home buyers. The average age of first-time homebuyers has increased to around 33 years, reflecting the challenges younger generations face in affording homes due to rising prices and stagnant wages.
While the cost of child care varies depending on several factors, the average cost of child care in the United States was $11,582, in 2023. This is a nearly 250% increase from 1991. Considering wage stagnation and the cost of hospitalization for delivery, younger people are hesitating to have kids.
Madhura elaborated that inflation has significantly raised living costs, with essential goods becoming moreexpensive. Meanwhile, she mentioned, wage growth has not kept pace with inflation.“Average hourly earnings have decreased when adjusted for inflation, making it increasingly difficult for families to maintain their standard of living. Housing prices have surged, with many areas experiencing increases that outweigh wage growth,” our expert claimed.
Madhura elaborated that inflation has significantly raised living costs, with essential goods becoming moreexpensive. Meanwhile, she mentioned, wage growth has not kept pace with inflation.
“Average hourly earnings have decreased when adjusted for inflation, making it increasingly difficult for families to maintain their standard of living. Housing prices have surged, with many areas experiencing increases that outweigh wage growth,” our expert claimed.
Gone are the days when regular people could afford big traditional weddings as the average cost of a wedding in the United States in 2024 was around $33,000, a slight increase from the previous year’s $29,000. This spiked cost has not only affected the number of guests getting invited, but the marriage rate has also declined.
The average price of a new vehicle in the United States in 2023 was around $47,010, which was about 1.6% higher than in 2022. In addition to the purchase price, other expenses like registration, repairs, and insurance also impact the overall budget. Considering the fact that the average salary in the USA is $68,124 per year, it becomes challenging for middle-class families to own a car.
“The wage gap between CEOs and average employees has widened significantly; for instance, CEO compensation has increased dramatically over the years compared to stagnant wages for typical workers. This disparity limits economic mobility and restricts access to resources necessary for investment in education and healthcare,” Madhura noted.
The everyday expenses like utilities, groceries, travel, etc. also take a hit for the middle-class folk as the inflation keeps rising. The average annual cost of living for a single person is $44,312, which eats up most of their salary, leaving little space for savings.
The cost of eating healthy food averages $1000 to $1200 per month, and as the middle class is unable to afford it, they look for cheaper alternatives, consuming unhealthy food. This leads to an unhealthy lifestyle, which puts people in a vicious cycle of unaffordability of healthcare and good food.
The sale of branded items in the US has decreased, particularly luxury goods. There’s a shift in consumer behavior as sales of private-label brands have increased owning to the fact that consumers have become more budget-conscious.
Madhura also raised some major concerns about the lasting consequences that the unaffordability of higher education or healthcare can have on the middle class. “In the USA, quality healthcare and education are predominantly private, which can lead to significant financial burdens on families who must pay out-of-pocket expenses or incur debt for services that should be accessible,” she added.Madhura stressed that this situation may hinder upward mobility and increase economic inequality. She claimed that with quality healthcare and education largely privatized, families face substantial financial burdens that can lead to significantdebt, creating a cycle that strains their financial stability and overall quality of life.
Madhura also raised some major concerns about the lasting consequences that the unaffordability of higher education or healthcare can have on the middle class. “In the USA, quality healthcare and education are predominantly private, which can lead to significant financial burdens on families who must pay out-of-pocket expenses or incur debt for services that should be accessible,” she added.
Madhura stressed that this situation may hinder upward mobility and increase economic inequality. She claimed that with quality healthcare and education largely privatized, families face substantial financial burdens that can lead to significantdebt, creating a cycle that strains their financial stability and overall quality of life.
The problem of inflation is also taking away the joy of the festive season as people can’t afford the overpriced goods. Americans spend an average of $900 to $997.73 per person on holiday gifts each year, and many folks hesitated to spend so much this year.
Movie ticket prices in the United States have been increasing over the years. In fact, the average price of a movie ticket rose from $9.16 in 2019 to $10.53 in 2022. This has significantly reduced movie theater attendance, and the trend is expected to continue with the rise in OTT platforms.
With a surge in travel costs, airfares, lodging, recreation, and food and beverages, nearly 69% of American adults are changing their plans because of inflation. This has also urged them to plan shorter trips in order to avoid splurging on these trips.
See Also on Bored Panda
When we enquired whether there are any effective policies or interventions that could stabilize or reverse this trend, Madhura shared some wise words:
“To address these issues, potential policies could include raising the minimum wage to match living costs, implementing rent control measures to manage housing affordability, and expanding access to affordable healthcare and education. Additionally, reducing or eliminating tariffs could help lower consumer prices and enhance purchasing power for middle-class families.”
Considering the fact that saving after retirement has become a big challenge for the working class, leisure and travel have become a luxury that very few can afford.
Owning to the colder temperatures in the Midwest and Northeast, heating homes is a necessity that folks need. Unfortunately, consumers who heat with electricity are expected to see the biggest increase in costs, with an estimated 13.6% rise to $1,208. Meanwhile, heating with propane, natural gas, and oil is also expected to see an increase in cost.
Although people can’t afford to fall into debt, the middle class is drowning in household debt, student loans, and even credit card delinquency. In fact, theaverage personal debtper individual grew from $21,800 in 2023 to $22,713 in 2024.
Although the average cost of a divorce in the United States can vary greatly depending on the complexity of the case, its location, and whether the divorce is contested or uncontested, the average cost is around $11,300 per spouse. Despite the increasing amount,divorce statsare also increasing, however, it might prove difficult in the near future.
Sadly, working people are not prioritizing their health as they are forced to work even when they are sick. Currently, there is no federal sick leave law, however, some states do provide mandated sick pay.
Modal closeAdd Your Answer!Not your original work?Add sourcePublish
Modal close
Add Your Answer!Not your original work?Add sourcePublish
Not your original work?Add sourcePublish
Not your original work?Add source
Modal closeModal closeOoops! Your image is too large, maximum file size is 8 MB.UploadUploadError occurred when generating embed. Please check link and try again.TwitterRender conversationUse html versionGenerate not embedded versionAdd watermarkInstagramShow Image OnlyHide CaptionCropAdd watermarkFacebookShow Image OnlyAdd watermarkChangeSourceTitleUpdateAdd Image
Modal closeOoops! Your image is too large, maximum file size is 8 MB.UploadUploadError occurred when generating embed. Please check link and try again.TwitterRender conversationUse html versionGenerate not embedded versionAdd watermarkInstagramShow Image OnlyHide CaptionCropAdd watermarkFacebookShow Image OnlyAdd watermarkChangeSourceTitleUpdateAdd Image
Ooops! Your image is too large, maximum file size is 8 MB.
Upload
UploadError occurred when generating embed. Please check link and try again.TwitterRender conversationUse html versionGenerate not embedded versionAdd watermarkInstagramShow Image OnlyHide CaptionCropAdd watermarkFacebookShow Image OnlyAdd watermark
Error occurred when generating embed. Please check link and try again.
TwitterRender conversationUse html versionGenerate not embedded versionAdd watermark
InstagramShow Image OnlyHide CaptionCropAdd watermark
FacebookShow Image OnlyAdd watermark
ChangeSourceTitle
Work & Money
