There is no doubt that the last decade has brought significant change for middle-class New Jersey residents. One of the most significant is how far (or not so far) their dollars go.
Things that the average American used to expect appear out of reach. Middle-class necessities, such as summer vacation and a college degree, have quickly evolved into luxury indulgences.
Blame inflation, supply chains, or the world as a whole.
Whoever you point the finger at, the facts will remain unchanged. Life in the middle class has changed significantly over the last decade.
1: College Degree
In 2014, the average tuition for an in-state public school was $7,142. It wasn’t cheap, but it was certainly affordable for many middle-class families.
Currently, the same college costs students $9,687 per year. If that still sounds reasonable, consider that every other expense, including textbooks, housing, and on-campus meals, has risen significantly as well.
An out-of-state four-year public school degree currently costs more than $150,000 on average. In 2014, it was below $100,000.
2: Healthcare Costs
According to the Peterson-KFF Healthy System Tracker, Americans spent approximately $1,070 on out-of-pocket healthcare expenses ten years ago. When you account for inflation, that equates to $1,279 in today’s dollars.
Currently, the same healthcare services cost $1,425. This may not appear to be a significant jump.
However, Peterson-KFF points out that many Americans changed their healthcare spending during the same time period.
For example, they may have stopped paying for dental care because dental spending has significantly decreased. This demonstrates that the same healthcare costs are now prohibitively expensive for many middle-class Americans.
3: An Emergency Fund
Over the last decade, many middle-class Americans have lost their emergency savings. Financial experts generally advise keeping emergency funds on hand to cover three to six months of living expenses.
Unfortunately, a recent Bankrate survey found that 44% of Americans are unable to pay an unexpected $1,000 expense.
Some members of America’s middle class have never had an emergency fund. Still, recent inflation appears to play a significant role in whether the middle class can save or not.
Sixty-three percent of survey respondents said high inflation reduced their ability to save for emergencies.
4: Living Debt Free
Rising costs in the last decade have made it difficult, if not impossible, for middle-class Americans to live debt-free.
As more Americans use credit cards and payment plans to make large purchases, household debt in the United States has skyrocketed.
According to the New York Federal Reserve, household debt (excluding mortgage payments) totalled $2.96 trillion in 2014. Today, it stands at $4.87 trillion.
Based on this data alone, it is clear that many middle-class Americans are no longer able to live debt-free.
5: Snack Foods
A flexible discretionary spending budget is one of the hallmarks of a middle-class lifestyle. A portion of that budget is frequently spent on unnecessary but desirable foods, such as snacks.
However, recent reports indicate that Americans are reducing their snack food budgets in response to rising costs.
That’s not surprising, given that potato chips have risen from $4.30 in 2014 to $6.50 in 2024.
6: HomesÂ
Middle-class Americans have long desired to own a home, and ten years ago, it appeared to be within reach.
Today, however, it is nearly impossible to enter the housing market on a middle-class salary.
In 2014, the median home price in the United States was $275,200. According to Zillow data, the current median price is $335,170.
Mortgage interest rates are also much higher. In 2014, the average 30-year fixed rate was 4.17%. Currently, interest rates hover around 7%.
7: Concerts
Even ten years ago, seeing a well-known artist was relatively expensive. Tickets for Paul McCartney’s 2014 tour cost an average of $133.91 each.
Still, compared to today’s prices, attending a concert in 2014 was inexpensive.
The average cost of seeing Billy Joel on tour in 2024 is $560.07.
8: Vacations
Loading up the car and driving the family on a summer vacation used to be a staple of middle-class life.
However, many Americans are now foregoing traditional vacations due to the high cost.
According to Bankrate, 53% of Americans intend to take a summer vacation in 2024. Of those who take one, 36% intend to go into debt to pay for it.
This is unsurprising given the rise in costs over the last decade. Air travel, gas, hotels, and dining have all experienced significant increases. Taking a trip nowadays often necessitates earning more than a middle-class salary.
9: Pets
A recent Newsweek headline read, “Americans Can No Longer Afford Their Pets,” and it is correct.
Pet ownership has become more expensive over the last decade, leaving many middle-class earners concerned that they will be unable to care for their animals in the long run.
The cost of veterinary care has risen dramatically in recent years, owing in part to new medications and technology, but also to basic underlying costs such as increases in rent and electricity for veterinary clinics.
10: Kids
According to the Centres for Disease Control and Prevention, birth rates in the United States are at a historic low.
Though many factors influence fertility rates, there is no doubt that the rising cost of raising children has a significant impact.
A recent NerdWallet survey discovered that only 27% of non-parents intend to have children in the future. Many of them gave rising costs as their reason.
11: Retirement
If you were considering retirement ten years ago, you would have needed a significant amount of savings. Today, the figure is even higher.
Costs have risen so dramatically over the last decade that up to one in every eight retirees is returning to work. Many middle-class earners are concerned that they will never have enough savings to leave their jobs.
With the estimated cost of retirement approaching $1.5 million, this is not surprising.
When you’re earning a middle-class salary, a figure like that seems unattainable.
12: Disneyland
A visit to Disneyland or Disney World has long been a treat for middle-class families. It used to be feasible every few years, but the theme park has now priced many Americans out.
In 2014, a Disneyland ticket cost $96. A one-park ticket can now cost up to $194 during peak hours.
When you factor in travel, food, and lodging costs, the total becomes outrageous.
According to one NerdWallet report, the average cost of a three-day Disney trip for a family of four is $3,636, excluding airfare.
13: Sporting Events
Ten years ago, middle-class Americans could enjoy professional sporting events on a regular basis. Many had season tickets to their favourite teams.
While some sporting events remain affordable, many are out of reach for most middle-class families. It’s not just about the ticket price, after all.
Sports fans must also consider the cost of parking, food, and beverages at the event, all of which have increased in price over the past decade.
14: Childcare
Over the last decade, the cost of childcare has risen by 36%. This means that childcare costs have outpaced inflation, prompting middle-class earners to seek alternative solutions.
Instead of paying for childcare, many middle-class Americans prefer to have one spouse leave the workforce.
Others choose to work alternating schedules, with one parent at home and the other working.
15: Steak Dinners
A decade ago, the average price for beef steak was just under $7 per pound. It was an expensive dinner option, but not out of reach for the middle class.
If you want to buy steak at the grocery store today, expect to pay around $10.70 per pound. Remember, that’s the average. If you want a high-quality fillet mignon, expect to pay significantly more.
Many middle-class earners find it difficult to afford a weekly, biweekly, or even monthly steak dinner at those prices, even if they prepare it themselves.
Many middle-class Americans cannot afford to dine at a steakhouse.
16: Date Night
In 2024, MoneyGeek discovered that the average cost of taking your sweetheart to dinner and a movie was $123. However, it was significantly higher in many cities, including Miami, where it could reach $156.
In 2014, surveys revealed that Americans spent an average of $60 per month on dates.
Given the rising cost of dining out, these figures aren’t surprising. If you’re a middle-class American, you might find yourself having fewer date nights.
17: A New CarÂ
According to Kelly Blue Book, a Honda Acura cost $27,437 in 2014. In 2024, a new Honda Acura RDX will cost $44,500.
And it’s not limited to Honda. As of January 2024, the average list price of a new car on Cars.com was $49,096.
With such prices, middle-class earners can expect to run their current vehicles into the ground.
