Americans Say They’re Reducing Spending and Budgeting Strictly, Yet the American Dream Feels Unattainable

Many Americans are tightening their belts these days—whether that means sticking to strict budgets or cutting back on everyday spending. But even with those efforts, a growing number worry they’ll still fall short of big life goals like buying a home or retiring comfortably.

In a report released this week by U.S. Bank, about 63% of Americans said they have given up on at least one financial goal like homeownership or having children because of the cost. That’s based on a survey of 5,000 people. Gen Z had the biggest negative outlook, with 76% responding that they’ve given up on a financial goal.

That’s even as 68% of survey respondents said they are following a budget, along with 64% who said they are spending less on leisure activities and 57% who are creating a financial plan as Americans deal with the rising cost of living.

Young Americans Are Giving Up on More Goals Than Their Parents

Younger generations were more likely to say they have given up on a goal because of cost, with 76% of Gen Z and 72% of Millennials having given up on a goal compared to 66% of Gen X and just 45% of Baby Boomers. Those younger groups were also more likely to say they have given up on owning a home or having children.

Across generations, 81% of the total survey said they think it will be harder for them to retire than it was for their parents, as the cost of living continues to rise. And for those thinking about life after retirement, 63% said they are concerned they might have to come back to work after retiring. A key inflation metric is set to be released on Friday and it’s expected to accelerate for a fourth straight month.

Despite those concerns, most of the group surveyed said they feel they are currently in control of paying off their credit cards and keeping their jobs, but many still remain stressed that credit card debt or a sudden job loss could derail their financial plans and feel that they have little control over the economy or politics.

“Even though Americans are budgeting, investing and cutting back on spending, many wonder if their efforts are worth the sacrifice because the goals most people care about—buying a home, retiring comfortably, building wealth—depend on economic forces beyond their control,” U.S. Bank’s President of Wealth Management Scott Ford wrote in the report.

The American Dream Costs $5 Million, and Most Won’t Make Anywhere Near That

According to Investopedia’s recently-released annual estimates, an average “American Dream” of owning a home and car, getting married, having two kids and pets, funding health care and retirement, and taking annual vacations in today’s economy would cost just north of $5 million over a lifetime.

In the second quarter of 2025, the Bureau of Labor Statistics said the median full-time worker in the U.S., of which there are 121.5 million, made $1,196 per week. That equates to a salary of $62,192, which you would need to earn consistently for about 81 years to afford Investopedia’s American Dream, longer than the average U.S. lifespan of 78.4 years.

Over the course of 50 working years from a teenager to a typical retirement in their mid-60s, that $62,192 annual earnings amounts to lifetime earnings of about $3.11 million, nearly $2 million shy of the American Dream’s projected cost. Wages have not kept pace with the rising cost of living in recent decades, leaving many Americans who would be “middle class” in previous generations feeling like their financial goals are impossible to reach.