Additional Coverage:
- 12 Things the Middle Class Can’t Afford Anymore (financebuzz.com)
Middle-Class Squeeze: 12 Things That Are Getting Harder to Afford
In an era of ever-climbing prices, the financial landscape for many Americans is becoming increasingly challenging. The once-clear path to a comfortable middle-class life now seems riddled with obstacles, making it tougher than ever to get ahead. For millions, the definition of “middle class” simply isn’t what it used to be.
Here’s a look at some essential items and experiences that the middle class can no longer comfortably afford, often requiring significant financial sacrifices:
1. A Four-Year College Degree
The dream of a college education has become a daunting financial burden. According to the Education Data Initiative, an in-state public college with on-campus living now averages a staggering $38,270 per year, totaling over $153,000 for a four-year degree. Private or out-of-state institutions push these costs even higher, often forcing students into a cycle of loans that can make financial stability a distant dream post-graduation.
2. Healthcare Costs
The cost of staying healthy is a major stressor. A Kaiser Family Foundation (KFF) poll reveals that 40% of Americans are saddled with medical or dental debt, either on credit cards, in collections, or owed to other lenders.
Nearly half (48%) are anxious about meeting their insurance premiums. The KFF survey also found that as of March 2024, a quarter of U.S. adults had postponed medical care in the past year due to cost concerns.
3. Dental Care Costs
Even more Americans are putting off necessary dental work. In 2022, 41% of Americans reported delaying dental care in the previous 12 months because they couldn’t afford it, according to KFF data.
4. An Emergency Fund
Financial experts universally recommend saving at least three months’ worth of expenses for emergencies. However, a 2023 LendingTree report indicates that 58% of Americans lack an emergency fund, and a concerning 49% can’t even cover a $1,000 unexpected expense. This isn’t due to naivety; 93% of Americans admit to experiencing at least one financial crisis in their adult lives.
5. Living Debt-Free
The idea of living without debt has become a rarity. By mid-2023, credit-reporting agency Experian found the average American debt had soared to $104,755, highlighting just how much of a luxury a debt-free existence has become.
6. Snack Foods and Beverages
Even everyday indulgences are feeling the pinch. USDA data shows food prices have jumped 23.6% between 2020 and 2024. Consequently, a survey by Swiftly reveals that Americans are cutting back on specific grocery items, particularly snack foods and drinks.
7. A Home
While homeownership rates have seen a post-pandemic rise, middle-income buyers are still struggling to find affordable housing. In June 2023, the National Association of Realtors reported a shortage of approximately 320,000 affordable homes for middle-income earners, failing to meet demand.
8. Concerts
Live music, once a common pleasure, is becoming a luxury. An Insuranks survey from 2023 showed that four out of five Americans planned to attend at least one concert, but rising ticket prices are making them unattainable for many middle-class concertgoers. A striking 46% of respondents even considered getting a second job to afford a pricey ticket.
9. Unpaid Sick Days
Federal law doesn’t mandate paid sick leave, leading to a concerning trend: 89% of American employees admit to going to work sick in the past year, according to a BambooHR survey. Nearly half (46%) of these individuals felt they were too ill to be at work at all.
10. Vacations
The joys of travel have been significantly impacted by the pandemic and inflation. Despite 58% of U.S. residents saving for travel, a 2022 Outdoorsy survey found that 72% had to dip into those funds to cover other essential expenses.
11. Retirement
The dream of an early retirement, or even retirement at all, is increasingly out of reach for many middle-class Americans. A 2023 Axios and Ipsos survey revealed that 36% of individuals aged 55 and older don’t believe they’ll be able to retire at their planned age.
12. Kids
While Americans’ desire for 2.1 children has remained consistent for decades, birth rates have noticeably declined. Research from the Carolina Population Center suggests that the soaring cost of living may be a significant factor. Raising a child to age 17 now costs an average of $233,610, according to the Institute for Family Studies.
The Bottom Line
The financial security once synonymous with the middle class has diminished significantly. While we can hope for continued subsidence of inflation to make goods more affordable, it’s clear that proactive financial management is more crucial than ever.
Smart Money Moves for Everyone:
No matter your current financial standing, there are always opportunities to optimize your finances. Here’s a quick checklist to consider today:
- Tackle Debt Head-On: Debt can be a major roadblock to financial progress. Beyond cutting expenses, explore tools like balance transfer credit cards or debt counseling to accelerate your payoff.
- Boost Your Income: A little extra cash can provide much-needed breathing room. Consider a new job, or if a major change isn’t feasible, a part-time side hustle can make a substantial difference.
- Trim Expenses Strategically: While it might sound daunting, smart expense reduction doesn’t have to be painful. Focus on your biggest outlays for the most significant savings.
For example, soaring auto insurance rates mean shopping around for a new provider could quickly lower your bill. Planning a vacation?
The right travel credit card could help offset costs.
Read More About This Story:
- 12 Things the Middle Class Can’t Afford Anymore (financebuzz.com)