Middle Class Crisis: 25 Items Many People May No Longer Afford Soon
Life is always about balancing what we want and what we can afford. Sometimes, there is plenty of money; other times, every cent matters. For the middle class, this often means carefully managing dreams and money.
In the next ten years, some comforts that the middle class now has might become harder to buy. What are these things? Let’s look ahead and find 25 items that could soon cost too much for the average family, along with their prices now and what they might be later.
Higher Education Tuition Fees
Tuition rates for higher education are climbing, making it challenging for middle-class families to afford college.
Today, the average annual tuition for a four-year public university is about $11,000 for in-state students and $29,000 for out-of-state students. In ten years, these figures could rise to $15,000 and $38,000 respectively, based on historical annual increases in tuition of about 3-4%.
This issue is further complicated for families with multiple children planning to attend university. With grants and scholarships becoming scarcer, families may need to bear a larger share of the financial burden.
Homeownership in Certain Areas
Home prices in high-demand neighborhoods are rising steadily. Currently, the median home price in these areas is around $420,000.
With continued demand and inflation, this could increase to $600,000 or more, projected using historical home price appreciation rates, which vary by location but average around 4-5%.
Changes in mortgage regulations and lending practices could further impact middle-class access to homeownership. Stricter lending requirements and higher interest rates make it more difficult for those with limited savings and less-than-perfect credit to own a home.
Premium Streaming and Subscription Services
Premium streaming platforms such as Netflix and Disney+ each charge about $15 every month.
As more services appear and prices keep rising, the total bill for several subscriptions could hit $100 or more each month in the next ten years, since prices have been going up by about 5-7% every year.
Many middle-class families may need to cut back on these extras and choose cheaper or different ways to watch shows and movies.
Childcare Expenses
We are lucky in this case. We both stopped working when our kids were 2 years old or younger. So, we take care of the kids full time. But if we both kept working, paying for childcare would be hard. It keeps getting more costly.
Daycare centers, nannies, and babysitters cost more now and rise faster than wages. On average, full-time daycare costs about $10,000 each year.
This price might go up to $15,000 a year, based on past increases of about 3-5% each year. This makes it very hard for middle-class families with small children.
As more parents work, the need for childcare will grow, making the cost problem even worse.
Vacations Abroad
Travel costs, like plane tickets and hotel prices, are going up. Right now, a family trip to another country can cost about $5,000.
With higher prices and extra charges, this could quickly rise to $10,000, based on past yearly increases of about 4-5%. Money problems and changes in currency values also make travel more expensive.
This is why we like to take trips inside the country instead.
Private Health Insurance
Private health insurance covers medical costs beyond what public healthcare offers. Currently, the average premium for a family is around $24,000 per year.
With rising healthcare costs outpacing inflation, this could soar to $35,000 per year in a decade. This trend will likely continue, making insurance premiums harder to manage for middle-class families.
Exploring alternative healthcare options, including government-sponsored plans, might become a necessity.
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Regular Spa Treatment and Salon Services
Spa treatments give a rest from everyday stress, but their prices are going up. A usual massage or facial now costs about $100 each time. In ten years, these treatments might cost $150 or more, based on past price rises for personal care services of about 3-4% each year.
Massages, facials, and haircuts are getting more costly, turning them into a luxury instead of a regular treat for middle-class families. People may choose to spend money on important needs instead of on self-care services.
Gym Memberships and Personal Trainers
Keeping gym memberships and paying for personal trainers might get hard for middle-class families. Right now, a gym membership costs about $50 a month, and personal training sessions cost $60 each.
These prices could go up to $75 and $100, based on past yearly increases of about 3-5% in gym and trainer fees.
Many people might start using home workout apps or online fitness programs instead.
Expensive Electronics and Gadgets
Devices like laptops, gaming consoles, and smartphones are very popular.
A top smartphone now costs about $1,000. With new features and changes, this price might go up to $1,500, based on usual yearly increases of 4-5% in electronics.
Middle-class families might choose mid-level models or used devices to get the technology they need.
High-Speed Internet and Advanced Connectivity
High-speed internet and advanced connectivity options, like fiber-optic networks, come at a premium. Currently, a high-speed internet plan costs around $60 per month.
At least that was true a few weeks ago when I started writing this. In just the last few weeks it has gone up for a few providers! This is actually one that I would love to hear in the comments. We are shopping for someone to replace Spectrum at 300 to 500 mbs.
Based on trends in internet pricing and technological advancements of around 4-5% annually, this could rise to $100 per month pretty quickly. As remote work and online schooling continue to grow, the cost of maintaining high-speed internet access may become burdensome for middle-class families.
Home Renovations and Upgrades
Home renovations enhance comfort and aesthetics but come with a hefty price tag. A typical kitchen remodel now costs around $25,000.
With rising material and labor costs, this could increase to $40,000, projected using historical increases in construction costs, materials, and labor of around 4-5% annually. Middle-class families might turn to DIY projects or seek financing options to manage these expenses.
Dining Out Frequently
Eating out is a favorite way to enjoy good food and quality time with family. Currently, a family might spend around $100 per dinner dining out. Add that up with all the $25-40 breakfast and lunch take outs and it gets expensive.
This could rise to $500 or more as restaurant prices continue to climb, based on historical increases in restaurant prices of around 3-4% annually. This makes frequent dining out a significant expense that middle-class families may need to cut back on.
Organic and Specialty Groceries
The need for organic and special foods is growing, but the prices for these items are also going up. Right now, a family might spend $150 on organic groceries for one week.
In ten years, this could rise to $250, based on past food price increases of about 3-4% each year. Families with average incomes might have a harder time paying for organic and special foods, choosing cheaper regular options instead.
Luxury Cars
Luxury cars have high-tech features and use top materials, which makes them costly.
Right now, a typical luxury car costs around $60,000. In ten years, the price might go up to $90,000 or more, based on past increases of about 3-4% each year.
The cost to keep these cars running also adds up. Many middle-class families may find it harder to pay for a luxury car.
To me, owning a pricey car never made sense. Especially when you think about how many hours you must work (before taxes!) just to pay for it. You end up working several hours a day just to drive yourself to and from work.
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Private School Tuition
Private schools usually have smaller classes and special programs, but the cost of tuition is going up. Right now, private school tuition is about $12,000 a year.
In ten years, it might go up to $20,000, since private school tuition has been rising about 3-5% each year in the past.
For middle-class families, paying for private school could get harder, making them think more about public school options.
Multiple Vehicles per Household
Owning multiple vehicles offers convenience but comes with high costs. Currently, the average cost of a new car is about $40,000. In ten years, this could rise to $60,000 per vehicle, based on historical price increases for vehicles of around 3-4% annually.
Middle-class families might find it more practical to rely on a single vehicle.
Club Memberships
Country and private golf clubs provide chances to meet others but have growing costs. Membership fees now usually cost about $10,000 each year.
These fees might go up to $15,000 or more, as they have been rising about 4-5% every year in the past. Few spots and upkeep expenses help cause these price rises.
Middle-class families may choose other fun activities like cultural shows and sports leagues.
High-End Fashion and Designer Labels
High-end fashion and designer brands show luxury and status. Right now, a designer handbag can cost $2,000. In ten years, these luxury items might cost $3,000 or more, since prices for luxury goods have gone up about 3-4% each year in the past.
As prices keep going up, middle-class families might choose cheaper brands, used stores, or clothing rental services to keep looking fashionable.
Premium Event Tickets
Attending concerts, theater performances, and major sporting events is a popular way to enjoy leisure time, but ticket prices are rising. Currently, premium event tickets can cost $150 each.
This could rise to $250, based on historical increases in ticket prices of around 3-4% annually. Middle-class families may find it harder to justify the expense of attending these events regularly.
High-Quality Home Furnishings
Investing in high-quality furniture and home decor can enhance comfort and aesthetics but can be expensive. Currently, a high-quality sofa might cost $1,500.
In ten years, this could increase to $2,500, based on historical increases in furniture and home decor prices of around 3-4% annually. As the cost of materials and craftsmanship increases, middle-class families may need to opt for more budget-friendly furnishing option.
Personal Coaching and Tutoring Services
Hiring personal coaches for work growth or tutors for school help can be useful but expensive. Right now, these services cost about $50 per hour.
This price might go up to $75 per hour, based on past yearly increases of about 4-5% in coaching and tutoring fees.
As more people want one-on-one help, the costs also go up, making it hard for middle-class families to pay for these extra services.
Sustainable and Eco-Friendly Products
Sustainable and eco-friendly products, like solar panels and energy-saving appliances, usually have a higher starting price. Right now, a solar panel system can cost about $20,000.
This price might go up to $30,000, given the usual rise in costs and the fact that about 4-5% more people buy these products each year.
Even though these choices can save money over time, the first cost might be too much for many middle-class families.
Pet Care and Veterinary Services
Pet ownership includes regular costs for food, grooming, and vet visits. Right now, yearly pet care costs are about $1,500 per pet. This might go up to $2,500 per pet, based on past increases of around 4-5% each year.
As these costs grow, middle-class families might find it hard to pay for the same care for their pets, causing tough decisions about keeping pets.
Recreational Activities and Sports Leagues
Participation in recreational activities and sports leagues often involves fees for equipment, uniforms, and travel. Currently, these costs can average $1,000 per year per child. Our kids are all less than seven, and it’s costing us $100s per season per kid.
This could rise to $1,500, based on historical increases in costs for recreational activities of around 3-4% annually.
These costs are increasing, making it challenging for middle-class families to support their children’s involvement in multiple activities.
Home Automation and Smart Devices
Home automation systems and smart devices bring ease and safety but can be expensive. Right now, setting up a home with smart devices may cost about $2,000.
This price might go up to $3,500, based on how prices for electronics change and about 4-5% more people using them each year. As these tools get better and more common, the cost to equip a home with smart devices might be too high for many middle-class families.
Buy Now, Or Pay Later?
Getting through the money challenges in the next ten years will need middle-class families to make smart decisions.
By looking at other options and focusing on important spending, they can handle the growing prices of these extras.
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