Expensive Items Purchased by Wealthy Families, Unattainable for the Average Middle-Class Household in 2025
In the rapidly evolving economic landscape of the United States, middle-class families are grappling with a growing array of financial pressures. One of the primary factors contributing to the financial advantage of wealthy families over middle-class families is a combination of investment-driven wealth growth, weakened labor support, technological shifts favouring skilled workers, tax advantages, and intergenerational transfers.
A significant concern for middle-class households is their savings rate, which often falls short of the recommended savings rate of 10% to 15%. This shortfall becomes even more pronounced when considering the rising costs of essentials such as education, healthcare, and housing.
The national average private school tuition in the U.S. is approximately $13,300 per year, with private high schools averaging about $17,044 annually. In 2025, the average annual tuition for a day school is approximately $49,284, a rise of 7.4% from the previous year. For those seeking a more elite education, the average annual tuition for a boarding school is roughly $73,080, a rise of 5.3% from the previous year.
The rising costs of education place a significant burden on middle-class families, particularly as they strive to provide their children with quality opportunities and a secure standard of living.
The disparity in healthcare access exacerbates the financial strain on middle-class families, who often have to choose between comprehensive healthcare and other financial priorities. In 2025, the rising costs of healthcare in the U.S. place a significant financial burden on these families. Employer-sponsored health care coverage in the U.S. is expected to increase by about 9% in 2025, surpassing $16,000 per employee.
Long-term care costs are substantial and can deplete savings for middle-class families without comprehensive insurance plans. Wealthy families, on the other hand, can afford comprehensive long-term care insurance and retirement planning, ensuring a comfortable elderhood.
The housing market in desirable urban and suburban areas remains out of reach for many middle-class families due to tight supply and stagnant income growth. In 2025, the forecast for home prices in desirable urban and suburban areas is a rise of about 3% or less, but affordability remains an issue due to tight supply and stagnant income growth.
The rising costs of education, healthcare, and housing have created significant barriers for middle-class families seeking quality opportunities and a secure standard of living. The median retirement savings for middle-class households not yet retired is approximately $66,000, while retirees have around $186,000 in total household savings, excluding home equity. Due to financial pressures, many middle-class individuals expect to work past the traditional retirement age, with nearly half planning to retire after 65.
The overall private school tuition in Connecticut, on average, is $30,840 per year, and high school tuition averages $42,700 annually. ACA Marketplace premiums are projected to rise by a median of 7%.
The widening wealth gap in the U.S. has led to a scenario where many previously attainable middle-class luxuries are now reserved for the wealthy. This situation is further compounded by the fact that wealthy families typically diversify across asset classes, optimize taxes, and engage in legacy planning, further establishing their financial leads.
References:
- Autor, D., & Dorn, D. (2013). The Growth of Low-Skill Service Jobs and the Polarization of the U.S. Labor Market. American Economic Review, 103(5), 1553–1597.
- Piketty, T. (2014). Capital in the Twenty-First Century. Cambridge, MA: Harvard University Press.
- Saez, E., & Zucman, G. (2016). Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data. The Quarterly Journal of Economics, 131(2), 519–578.
- Slemrod, J. G., & Skinner, J. M. (2018). The Tax Cuts and Jobs Act: A Preliminary Analysis. Brookings Institution.
- Wolff, E. N., & Mishel, L. (2017). The State of Working America 2017-2018. Washington, DC: Cornell University Press.
- In the effort to alleviate financial pressures, middle-class families are increasingly seeking advice from personal-finance experts and wealth-management firms to better handle finance, business, and long-term planning.
- The growing wealth gap, exacerbated by factors such as investment-driven growth, tax advantages, and intergenerational transfers, highlights the need for middle-class families to prioritize robust personal-finance strategies and business ventures to increase their wealth and maintain a comparable standard of living.
