How much does it cost to have a lifestyle in the U.S. today? 

What is a lifestyle? Well, that can mean different things to different people.
Are you looking through the eyes of an aspiring Kim Kardashian or somebody who has $50,000 of student loan debt to pay off? This infographic will walk you through the concept of what a lifestyle is and how much it costs to have one in America today for different generations and income levels.

Introduction

How much does it cost to have a lifestyle in the U.S. today?

What do people consider to be wealthy

What people consider to be wealthy can mean very
different things for different people at different stages of life

Average net worth needed to be:

wealthy Wealthy financial-happy Financially
happy 		financial-comfortable Financially comfortable
2020Pre-Pandemic $2.6M $1.75M $934K
2021Post-Pandemic $1.9M $1.1M $624K

Net worth required to be “wealthy”, as per Americans in 2021, is double the average
US household net worth.

Source: https://www.aboutschwab.com/modern-wealth-survey-2021

What is wealthy according
to the different generations?

As you can imagine, the definition of wealth changes as you age.

For the average American that sweet spot of $2.27 million makes you truly wealthy according to the research

Source: https://www.cnbc.com/2019/05/13/how-much-money-americans-think-you-need-to-be-considered-wealthy.html

What are the basic things we need to get through each day? Several expenses contribute to the cost of living calculation, let’s examine the index to examine the affordability of all the states.

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Basics

Cost of living versus quality of living

Here is a detailed look at the basic costs of living in
different states across the country.

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Composite Cost of Living Index 2022 Annual Averages

Cost of living statewide

Source: https://meric.mo.gov/data/cost-living-data-series/

Before we get to the fun part of lifestyle we need to talk about the cost of having food and shelter in the U.S. The cost of living in this country varies depending on location, but on average it is considered high compared to the rest of the world.

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Housing

Changes in home values for the 50 Biggest Metros in the U.S.

City living isn’t for everyone as it can come with quite a high-cost factor. Here is a look at the most expensive cities in the U.S. based on various life costs.

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Percentage Inflation in Home Values (2000 to 2022)

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Source: https://spendmenot.com/blog/millennial-spending-statistics//

Fun Fact:

fun fact

Are you keeping up with the Joneses? The original phrase came about in 1913 in a comic strip of the same name by Arthur R. Pop Momand and about a family of social climbers who try to keep up with their more financially fortunate neighbours. And now not only do we see know well the Joneses are doing, but they are making TikTok videos about it.

How the different classes spend on housing

housing spend
  • Homeownership rates changed with generations over years
  • less than
    50% millennials own homes
  • 70% of Gen X own homes
  • 78.8% of
    Baby Boomers own homes

Homeownership Rates by Generation, 1985-2020

housing ownership

Source: https://spendmenot.com/blog/millennial-spending-statistics/

How Inflation has Adversely Impacted Millennial Homebuying

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How Home Prices have Changed Across the Decades

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Some Gen Zers and Millennials have gone into debt or rentership due to housing costs

In 2019 alone, home prices rose 20%

Overall income has gone up 7%

Source: https://anytimeestimate.com/research/housing-prices-vs-inflation/

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Food

How much people plan to spend on food

From coupon cutting to dining at the finest of restaurants costs can vary widely when it comes to your food budget.

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How much people plan to spend on food

From coupon cutting to dining at the finest of restaurants costs can vary widely when it comes to your food budget.

food index chart

Source: https://www.clearvoice.com/blog/consumer-spending-by-generation/

If we are lucky enough to be healthy, many people are trying to figure out how to live even longer and look good while doing it, no matter the cost.

Wellness

Wellness & Beauty

Revenue in the Beauty & Personal Care market reached $571.1 billion in 2023 and is expected to grow by 3.8% through 2027. People are willing to shell out a lot of cash to be “healthy.” Just ask Gwyneth Paltrow.

Wellness & Beauty

Percentage of generation planning to spend on wellness and beauty expenses

Percentage of generation planning to spend on wellness and beauty expenses

Source: https://www.clearvoice.com/blog/consumer-spending-by-generation/

Fashion Fashion

Some people view clothes as a necessity, for others it is an art form that costs quite a lot of money.

Fashion

Percentage of generation planning to spend on Fashion

Percentage of generation planning to spend on Fashion

Source: https://www.clearvoice.com/blog/consumer-spending-by-generation/

  • 71% of Millennials
    visit multiple stores to find deals
  • 57% of Baby Boomers
    are searching online
    to find the best deals
  • 33% of Gen Z have bought a product based on an influencer’s recommendation

Source: https://us.fashionnetwork.com/news/Report-says-millennials-prefer-to-shop-in-store-for-deals,871834.html

Travel & Inflation Travel & Inflation

FOMO & YOLO have taken travel to a whole new level

Thanks to social media you can now see all the fabulous trips the Joneses are taking and for younger generations, experiences are worth more than money.
Except these experiences cost money so you do the math.

Thanks to social media you can now see all the fabulous trips the Joneses are taking and for younger generations, experiences are worth more than money.
Except these experiences cost money so you do the math.

fomo-yolo
fomo-yolo

How different generation spends on travel

Travel means different things to different generations and this shows in how much they spend.

Percentage of generations that plan to spend on travel

Percentage of generations that plan to spend on travel

Source: https://www.clearvoice.com/blog/consumer-spending-by-generation/

Inflation is certainly having an impact on travel hiking up airfare prices causing many Americans to moderate or completely cancel travel plans. 

Source: https://passport-photo.online/blog/inflation-vs-travel/

9 of 10 travelers downgraded their travels due to inflation

85% travelers turned to alternative modes of transportation because flight prices were so high

How inflation has impacted the cost of lifestyle

How different generations deal with the impact of inflation

How different generations deal with the impact of inflation

Plans for post-pandemic revenge travel may be seeing a slowdown depending on how old you are.

  • 52% of Americans overall have cancelled their travel plans
  • 56% of Gen Z have cancelled their travel plans
  • 59% of Millennials have cancelled their travel plans
  • 55% of Gen X have cancelled their travel plans
  • 42% of Baby Boomers have cancelled their travel plans
  • 32% of the Silent Generation have cancelled their travel plans

Source: https://us.fashionnetwork.com/news/Report-says-millennials-prefer-to-shop-in-store-for-deals,871834.html

Millennials are racking up debt due to skyrocketing inflation in the last few years. People ages 30 to 38 account for nearly $4 trillion of total household debt in the U.S.

Debt

More than 33% (those earning at least
$250,000 annually) are living paycheck-to-
paycheck

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36% put all their income toward
household expenses

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53% don’t have any extra cash left over after
paying their bills each month

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Millennials, approaching their
40s, have no money left after paying
their bills each month.

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Budget Stress

Pressure to have the elevated lifestyle is strong which means credit cards
are getting a lot of activity.

Revolving Debt

Source: https://www.bloomberg.com/news/articles/2022-06-01/a-third-of-americans-making-250-000-say-costs-eat-entire-salary

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Thanks to social media you can now see all the fabulous trips the Joneses are taking and for younger generations, experiences are worth more than money. Except these experiences cost money so you do the math.

Wealth Building

Strategies for wealth building according to each generation

Strategies for wealth building according to each generation
Strategies for wealth building according to each generation
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What Americans think about wealth building

27% thinks owning a home is
the best way to build wealth

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31% think saving for retirement
is the best wealth-building strategy

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26% Gen Z are more likely to put
the money
in an online savings account

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51% of high earners consumers have money
in stocks, which ties it with owning a home

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The Big Picture

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Most Americans just want to be happy.
But money, whether we like it or not, can be a big part of helping people attain a lifestyle. Though luxury items, travel, real estate, cars, etc., have always been part of the American dream, social media has only given us more access to what that life could be, and it has driven people to covet these things even more.

For some, they are even going into debt to attain a lifestyle. If you are struggling with debt or just want to get a better handle on your finances, there are options.

MyCredello is a free personal finance tool that helps relieve those debt pain points and help you do much more to be financially fit. Enter training mode to build your financial fitness and be well on your way to financial freedom.

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