10 Things getting out of reach for the Middle Class [View all]

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Some argue that the most sensible income amount to attach to the middle class would be the median household income, around $54,000. Perhaps, anyone who earns between the 25th percentile and 75th percentile is a member of the middle class.
Diana Farrell, once Deputy Director of America’s National Economic Council, told The Economist she thinks a middle class income begins at the point where a person (or family) has one-third of their income left over for discretionary purposes after they’ve provided themselves with food and shelter. In other words, someone who earns $3,000 per month would have $1,000 left after they’ve paid their mortgage or rent, utilities, and grocery bills
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Discretionary income is not so easy to find. We’ve created a list of ten things the middle class can no longer really afford.

1. Vacations
A vacation is an extra expense that many middle-earners cannot afford without sacrificing something else. A Statista survey found in 2014, 54% of people gave up purchasing big ticket items like TVs or electronics, so they could go on a vacation. Others made sacrifices like reducing or eliminating their trips to the movies (47%), reducing or eliminating trips out to restaurants (43%), or avoiding purchasing small ticket items like new clothing (43%).
2. New vehicles
While many consumers take a great deal of pleasure in buying a new vehicle, a report from Interest.com shows many households are stretching dollars more than they should. Out of the nation’s 25 largest cities, Washington D.C. is the only place where families can truly afford a brand new car, according to a simple calculation..
3. Student loans
Over the past decade, total college debt in America has surged 84% to over $1.2 trillion, according to the Federal Reserve. Approximately 40 million consumers have at least one open student loan, with the average balance totaling nearly $30,000 per borrower.
4. Emergency savings
Nearly half of Americans are placing almost nothing aside for the future. . If a financial emergency arises, 22% plan to cover the bill by reducing spending elsewhere, 16% say they will borrow money from family and friends, and 12% expect credit cards to fill the hole — potentially leading to even bigger problems down the road.
5. Retirement savings
The golden years aren’t just becoming tarnished, they’re becoming extinct. A retirement without some kind of employment is becoming a thing of the past. . Only one in five workers plan to immediately stop working and fully retire when they reach a certain age or savings goal.
6. Medical care
Medical care is a basic necessity and something we’d think would be affordable for someone earning a middle income. A Forbes article published data indicating that workers in large companies — many of whom are members of the middle class — “face nearly $5,000 in premiums, co-payments, deductibles and other forms of co-insurance.”
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7. Dental work
According to the U.S. Department of Health and Human Services, “The U.S. spends about $64 billion each year on oral health care — just 4 percent is paid by Government programs.” About 108 million people in the U.S. have no dental coverage and even those who are covered may have trouble getting the care they need, the department reports.
8. Skipped paychecks
You know the situation is dire when even those with decent incomes can’t afford to skip a paycheck. Nearly one-third of households making $75,000 or more a year live paycheck-to-paycheck at least sometimes.
9. Child care
Kids are expensive. The U.S. Department of Agriculture estimates it costs almost a quarter-million dollars to raise a child to age 18.

10. Going to the movies
. Many people aren’t going to the movie theater as often as they used to, and a big reason is the price. According to a recent report from PricewaterhouseCoopers, rising ticket prices is the biggest reason for movie theater dissatisfaction across all age demographics.
. In contrast, $60 buys the middle class six months of Netflix and all the movies and shows their eyes can handle.

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