Middle-class Americans are facing a tough financial situation in the next five years as the costs of essential services continue to rise. With a median income of $106,100, middle-class households are struggling to afford services that were once within reach.
College education is becoming increasingly unaffordable, with tuition costs at public four-year institutions rising by over 9% from 2010 to 2022. This trend is making it difficult for middle-class families to send their children to college without relying heavily on student loans.
Housekeeping services, once a luxury that some middle-class families could afford, are now becoming out of reach. The demand for housekeepers is increasing, driving up prices and making it harder for middle-class families to hire help around the house.
Handyman services are also likely to be unaffordable for middle-class homeowners in the coming years. As fewer people enter the profession, the cost of hiring a repair person or installer is expected to rise, leaving middle-class families to figure out how to do these tasks themselves.
Healthcare services are another essential that may become too expensive for middle-class families. With rising insurance premiums, out-of-pocket expenses, and prescription costs, even families with health coverage may struggle to afford necessary medical care.
Child care, including babysitting, live-in nannies, and day care, is also becoming increasingly costly. Babysitting rates have been rising, and day care expenses can easily amount to hundreds or even thousands of dollars a month, making it a significant financial burden for many middle-class families.
In addition to these challenges, other financial burdens such as housing costs and debt repayment can further strain middle-class budgets. It is essential for families to carefully budget and plan for these increasing costs to ensure financial stability in the coming years. By seeking out alternative sources of income and exploring cost-saving strategies, middle-class households can better navigate the changing financial landscape and secure their financial future.