Yahoo Finance I’m a Financial Planner: This is the American Dream in 2024
Financial planning for the American Dream these days is harder than ever. James Truslow Adams coined the phrase, “the American Dream” in his 1931 bestselling book “The Epic of America.”
Adams defined the American Dream as one “of a social order in which each man and each woman shall be able to attain to the fullest stature of which they are innately capable, and be recognized by others for what they are, regardless of the fortuitous circumstances of birth or position.”
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Adams also defined the American Dream as the “dream of a better, richer and happier life for all our citizens of every rank.” Though, according to JSTOR Daily, Adams alluded to the idea of the American Dream in 50 or more passages in the book, it’s a rather elusive and baggy concept. It doesn’t have the specifics we’ve come to associate with the American Dream.
What are those specifics? Dr. Geoffrey VanderPal, DBA, MBA, CFP, co-author of “The Steadfast Leader” broke them down for GOBankingRates and discussed how they’ve changed since their conception in the 1950s.
The 5 Pillars of the American Dream 70 Years Ago
Seventy years ago, around the 1950s, the American Dream was defined by several key pillars, according to VanderPal:
Homeownership: Owning a home in a suburban neighborhood symbolized stability and success.
Stable job: Having a secure, well-paying job, often in manufacturing or other industries that provide pensions and benefits.
Nuclear family: A traditional family structure with a married couple and children.
Education: Access to quality education for children, leading to better opportunities.
Upward mobility: The belief that each generation would be better off than the previous one, with opportunities for social and economic advancement.
“If you lived the American Dream in the 1950s, your life might have included owning a house in a quiet suburb, having a secure job with benefits, being part of a nuclear family and sending your children to good schools with the expectation that they would achieve more than you did,” VanderPal said.
For Years, the American Dream Was Attainable — For White Men, At Least
Part of what made the American Dream so attractive is that it could come true for just about anyone who put the work in — well, so long as that “anyone” was a white man.
“In the 1950s, the American Dream was relatively attainable for many, particularly for white Americans,” VanderPal said. “Post-World War II economic prosperity, the GI Bill and booming industries provided numerous opportunities for homeownership and stable employment. However, this dream was less attainable for minorities and women due to systemic racism, sexism and segregation.”
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The 5 Pillars of the American Dream in 2024
Some economists and other financial experts argue that the American Dream is dead. But there’s a solid argument that it’s still alive, it just looks a lot different today than it did 70 years ago.
These are the five pillars of the American Dream today, according to VanderPal.
Economic security: Having financial stability and the ability to weather economic fluctuations. The FIRE movement and focus on financial planning have been emphasized.
Work-life balance: Achieving a balance between work and personal life, prioritizing mental and physical health.
Access to education and healthcare: Quality education and healthcare are critical for personal and family well-being.
Homeownership: Still important but increasingly difficult for many due to rising property prices, increased interest rates, and inflation.
Entrepreneurship and innovation: Emphasizing the ability to start businesses and pursue innovative ideas. The work-from-home and digital nomad revolution accelerated during the pandemic.
Why Does the American Dream Look So Different Today?
It now makes sense that Adams’ definition of the American Dream was loose and open. If its specifics were set in stone, it wouldn’t be able to move and change with the times.
VanderPal touched on the key reasons why the American Dream looks so different today than when it first became a popular concept.
Technological Adaptation: Adapting to and benefiting from technological advancements including AI and robotics, and advancing beyond the limit of semiconductors based on silicon atom limitations.
Flexible work: Increased remote work and flexible job arrangements to improve work-life balance. Increased remote work globally and for Americans for better work-life experiences.
Community and collaboration: Building stronger communities and collaborative networks for support and growth using technology and social media to foster personal engagement post-pandemic.
We can’t know for certain what the next iteration of the American Dream will look like, but we can count on it continuing to evolve as our priorities, needs and other dreams do the same.
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This article originally appeared on GOBankingRates.com: I’m a Financial Planner: This is the American Dream in 2024
