Only People With Wealthy Parents Think 11 Once-Affordable Things Are Even A Possibility Now
KaterynaUKR | ShutterstockIt's an unfortunate reality, but many households struggle to make ends meet. In fact, roughly 49% of American families are unable to meet their financial needs, falling below the threshold needed to cover basic necessities like housing and food. Of course, wealth inequality in our country is nuanced, as it’s integrated and ingrained with so many of our institutions and societal constructs.
From navigating the workforce to getting an education, as well as meeting milestones like getting married or purchasing a home, wealthy people almost always have an advantage. Because while the middle class has trouble with everyday needs, only people with wealthy parents think once-affordable things are even a possibility now. And it speaks to how bad economic equality has become in the U.S.
Only people with wealthy parents think 11 once-affordable things are even a possibility now
1. Disposable income
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Considering 42% of Americans don’t have a savings account or money in an emergency fund, it’s not surprising that having a disposable income is something wealthy people don't usually think about. It's nearly impossible to save without extra money leftover after paying bills and buying necessities.
While many financial “experts” suggest that sacrifice mentalities and cutting back on spending can save money, the truth is that many people don’t have the time (or actual money) to save and build a nest egg, let alone have disposable income for fun purchases.
If you needed the sign, here it is: you’re not the only person struggling. Coupled with the emotional toll money stress can take on low- and middle-class households, it’s hard to save, but little changes and a mindset shift can pay off in the long run.
2. Financial comfort
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According to a Bankrate survey, what people envision they need financially to live a “comfortable” life, like a a $233K salary and over $1M in retirement, is worlds apart from what they’re earning and spending. So, financial comfortability and freedom are really things only people with wealthy parents think are possibilities now.
The luxury of spending without checking your bank account, going on trips, investing and saving money, and having a disposable income feels like a marker of the wealthy, not the average American family struggling to get by. It’s frustrating and somewhat embarrassing for many people to come to terms with, especially for those who have fallen into the trap of the American Dream, where hard work and perseverance are supposed to pay off at some point.
3. Never worrying about money
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Over 70% of Americans feel stressed or anxious about their current financial situation, according to research conducted by Capital One and The Decision Lab, with 58% of those respondents arguing that money stress regularly affects their daily life and well-being. From saving money to helping support their kids, and paying for necessities, never worrying about money is something most Americans don’t have the luxury of experiencing.
While taking action seems to be the collective advice from financial experts on mitigating this money stress, most people feel stuck and uncertain about the best way to do so. A great first step is to notice how your mindset fuels your anxiety over money.
Of course, being unable to pay bills or feeling stressed about checking your bank account every time a new expense comes up is often inevitable, but what about the spending you may not realize is harming your situation? Do you tend to spend when things get stressful? Are you overspending on anything unnecessary?
This is your reminder to check your accounts regularly. By recognizing how your mindset about money is sparking more stress, you can teach yourself to navigate financial hardship and adversity without added judgment or shame.
4. Home ownership
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Nearly half of Americans can’t afford to purchase the average starter home, according to a study from the National Association of Home Builders. But it’s not just the mortgage payments or a down payment that’s keeping the average household from being homeowners. In fact, it’s all the extra costs and unexpected financial burdens that come with it. And these expenses are things that only people with wealthy parents seem to think are affordable, even though it's a cost burden to the average individual.
Compared to a single unit apartment or condo, homeowners dish out a lot more money than you’d expect, from making home repairs to dealing with unexpected damages and even paying for utilities for an entire home. The average homeowner spends between $300 and $400 on utilities a month, not including HOA fees totaling $200 to $300 a month, as well as lawn care, maintenance and repairs, which cost another $3K annually, and a mortgage payment on top of it.
Not only does that feel unrealistic, it’s nearly impossible for the average American today, even with a double income. Especially when you see many wealthy families investing in second and third vacation homes, it’s no wonder people feel defeated battling rising rent costs and a lack of investments.
5. Accessible and comprehensive healthcare
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Over 24 million Americans are considered "cost desperate,” meaning they are unable to afford prescriptions and general healthcare. Even people with employee-sponsored healthcare plans feel left behind in the current economy, unable to afford to pay out of pocket and meet their deductibles.
Without the financial comfort necessary to seek care or emergency support, let alone preventive visits, accessible healthcare has become one thing that feels financially impossible if you're not wealthy. Healthcare should be a human right, so why is it that only the richest Americans can see a doctor and take care of their health?
6. Vacations
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According to a survey from Deloitte, the number of American families planning to take a vacation has dipped in the past few years, largely due to rising costs and financial instability. Even domestic travel is becoming inaccessible for families struggling to afford groceries, making it hard to carve out both time and money for fun trips and getaways.
Wealthy families that not only have the money and space to travel, but also the time to take off to do so, typically never give it a second thought. Instead of scrimping and saving to afford a vacation, it's simply a tradition that’s consistently upheld year after year, regardless of the state of the economy at the time.
Despite middle-class and even lower-class families having the freedom to take a family road trip or a budget vacation annually a few decades ago, with the rising costs of fuel, even that seems impossible now. Most American households today are forced to cut back, spending all their money on bare essentials and accommodating inflationary pressures, so they don't have anything leftover for leisure.
7. Affordable tuition
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For wealthy households, ensuring their kids get into an elite college costs nearly two million dollars, which is a sum of private school costs, tuition, extracurriculars, and university tuition prices. This dramatically illuminates the toxic state of the wealth divide in the U.S.
According to data from the Institute for Higher Education Policy, most American families today can’t afford the costs of university tuition, let alone the added expenses associated with their child getting a pick of colleges.
Alongside college costs, many wealthy families have the opportunity to continue supporting their kids into early adulthood, whether it's paying their rent or equipping them with investments that can serve as a passive stream of income. At the same time, they focus on their career or education.
It’s these seemingly subtle gifts that the average family can’t even think about having the financial freedom to do. But it sets these wealthy kids, who reap the benefits of generational wealth, at an advantage over the average adult child.
8. The ability to make investments
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Making investments and moving money between different accounts feels inaccessible and daunting to the average American. Lacking the knowledge, connections, support, and financial literacy it often takes to invest money efficiently, many Americans remain stagnant. They're unable to benefit from the compounding interest and growth that wealthy families build passive incomes with.
According to Tony Robbins, even tax efficiency is something that rich people tend to have in common. It helps them maximize their investments and cultivate passive streams of income by leveraging tax cuts and support that only wealthy individuals have access to. Even hiring a financial expert to help with taxes or investments seems impossible for Americans who can no longer afford eggs, leaving them consistently behind when trying to make long-term financial plans.
9. Childcare
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According to a study from the Center for American Progress, childcare expenses push more than 134,000 American families into poverty every year. So, it’s not just hiring a full-time nanny or caregiver that feels financially impossible for the average family, it’s regular childcare and daycare costs that are essential for working households to utilize.
As childcare costs rise, families without family members or grandparents to watch their children are especially affected. Many are forced to reduce their income to a single-income household to ensure someone is home to watch the kids, even if it means having even less money to spend on basic necessities like groceries and housing.
10. Retiring, or not having to work
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While people with wealthy parents think retirement is something that most people can afford, for the average American, saving for it is something that doesn't feel possible. Few people opt not to work, and even fewer can save enough to live comfortably in retirement.
Still, most of those with the freedom of financial comfort without a job are wealthy, benefiting from passive income or generational wealth. They’re able to plan last-minute trips and wake up without the all-consuming stress of a job to worry about, and they’re also more likely to gain experiences and spend quality time looking out for their own well-being.
This is part of the reason why wealthy people tend to have better health outcomes than their low-income peers, as they have the money for preventative care and can prioritize their health. Battling money stress and the innate sense of urgency their work sparks, imagining a world in which they don’t have to work is clearly one thing that feels financially impossible if you don't come from money.
11. Living by yourself
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According to data from Pew Research Center, more Americans today live in a shared household than ever before. They're unable to afford living conditions without a roommate or feel financially pressured to move back in with their parents. Especially for young people, before they have a partner they’re willing to split rent with, living with roommates is a non-negotiable if they don’t have the security of generational wealth or a significant income to live off of.
Like any of the other things that feel impossible to achieve financially for the average person, people with wealthy parents likely are very out of touch with the reality of rent costs and expenses. As our economic environment continues to grow more precarious, things like having a roommate are becoming more common than ever.
Zayda Slabbekoorn is a senior editorial strategist with a bachelor's degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
