A larger majority of the population may belong to the middle-class,
and often we hear a lot about America’s shrinking middle-class, and their impact on the economy.
They almost seem like robots because some of their reasoning, as you'll come to find out is similar.
So, I have a question for you, do you think you belong in the middle-class?
Well, here are 10 signs to counter check those claims.
1. You believe in the American dream Most people admire the American dream,
and for most not living within the United States of America,
the dream is about a land of milk and honey. Middle-class adults are more than just obsessed
with the American dream. A great education, living in a mansion, and driving your dream car.
The middle-class also fantasizes working their dream job and becoming very successful at it.
You’ll come to find that a majority still have faith in achieving a successful life,
and even a survey conducted concluded that, 55% of middle-class respondents, said anyone
can achieve the hallmarks of a successful life, compared with 48% for the overall population.
Since the middle-class are among the high earners of the population, there is a correlation between
being wealthier and believing in the dream. For example, home ownership has always been
a fixture of the American middle-class life, though after the real estate crash,
not much can be admirable about the dream, as most are opting for renting, as a better option.
2. You're slightly more optimistic about the economy
When a study was conducted back in 2017, the middle-class was more optimistic about
the economy. This comprised of almost 50% of self-described middle-class Americans. Currently
the stakes are high, considering the on-going pandemic, as a majority, if not all of the
world's economies have been affected. Despite the lower middle-class facing a harsh step down, more
are optimistic about better days ahead, and are making the most out of the situation. Most have
opted to start side hustles, and some have decided to expand their business online to stay afloat.
3. A College Education for the Kids Higher education is like a rite of
passage for the middle-class. This is why you will find most of them are drowning in student loans,
which they pay for years to come. All because of the mentality they were brought up with.
The grand idea that, to get ahead in life, you need to have a college degree.
As you know, tuition fees don't come cheap, and can cost from the low tens of thousands
of dollars to hundreds of thousands. Depending on the type of college too, the price tag could
be steeper. While a parent’s education level is not always a contributing factor in determining
middle-class status, the act of supporting and saving for a child’s education typically is.
Many middle-class parents end up saving all they have towards their children's college education,
just to ensure a child's success. Although it’s not always definite that a college degree
guarantees a successful future, a higher level of education has long been associated with greater
earning power. In recent years, more people are coming to realize that all one needs are skills
and specialization. As long as you are certified, it isn’t necessary to spend thousands of dollars,
as well as years, getting an education that won't be of value years to come.
4. Where One Shops It may seem silly, but where one shops is often
an indicator of class status, just like what kind of car one drives. Look at it this way, do you
ever imagine bumping into Marc Cuban on your trip to dollar tree or Target? Even when it comes to
bulk buying or discount chains, there is usually a stigma attached to stores. Why anyone would label
these stores in a classic way beats me however, the middle-class have certain mannerisms hard to
ignore. For example, one of the most middle-class places to shop is Target. They even go the extra
mile to advertise themselves as such, and are often viewed as a middle-class answer to Walmart.
Away from household shopping, the middle-class is big on brand names.
Clothing stores such as H&M and Zara are also known to serve more of the middle-class,
while the upper middle-class and upper class settle for sustainable clothing. This doesn't
mean the middle-class doesn't splurge on designer wear. Quite the contrary, they spend a lot of
money on extremely expensive designer brands, just because their favorite celebrities told
them to. That is why some have fallen into a debt cycle, they can't seem to get out of.
Mark Zuckerberg belongs in the uber rich class, yet wears $30 t-shirts. So why does
someone in the middle-class who doesn't even earn 1% of his net income need a $800 t-shirt?
So, before you consider shopping brand names, go for value first.
And speaking of, if you guys are getting value from this video, do me a huge favor
and kindly give this video a thumbs up. If you did,
thank you so much for your support, and now let’s keep learning.
5. Leisure Class Are you always looking forward to the weekend? Do
you enjoy some Starbucks latte? Then maybe you do belong in the middle-class. Historically, it was
only the upper class and perhaps the unemployed that had time for leisure, as the working class
and middle-class were completely consumed with their labor. However, with time, all this changed
as working hours reduced from 100 hours a week to about 44 hours a week. This meant that there was
more time to spare for leisure activities, and perhaps self-destructive behaviors.
If you look at most middle-class people, they are always looking forward to the weekend,
usually for rest and random escapades. If anyone knows how to party, it’s the middle-class.
They have boosted the entertainment industry due to the adaptation of upcoming trends.
As mentioned earlier, the middle-class enjoy luxury. Anything considered fancy
is something that is most likely to grab their attention. Even the type of cafe's they frequent,
in this case Starbucks, are very expensive and continue to thrive all thanks to the hype.
6. Your household earns between $50,000 to $125,000
According to research, half of people who self-identify as middle-class,
earn more than $50,000 a year but less than $125,000 a year.
However, a majority earn between $50,000 to $75,000. If you are racking up between $40,000
to $100,000 in your family, then chances are you belong in the middle-class. This
one probably seems obvious, but income is a big determining factor. However, location matters
too.The middle-class in one part of the country may not qualify as middle-class in another,
as the cost of living may be more expensive in certain areas. Typically, a median family on the
east coast earns $85,000 annually, while those in more rural areas qualify with just $55,000.
7. Tax Burden If you are facing a high tax burden,
then you are experiencing the plague that is killing the middle-class.
A high tax burden can instantly decrease the size of the middle-class
by simply eliminating discretionary income. It’s common for the tax burden of the middle-class to
be higher, than that placed on the upper class due to factors such as, regressive
taxes and the sophisticated tax strategies available to high net worth individuals.
8. Your parents were middle or lower middle-class
Not trying to kill your dream of breaking boundaries, and branching into the upper class,
but studies conducted show that 70% of adults who identify themselves as middle-class,
grew up in households that were either middle-class or lower middle-class. To
be exact, about 43% said their parents were middle-class, while 27% said they grew up with
lower-middle-class parents. That's not all, some external factors such as the place you grew up in,
may have an effect on the chances of your overall success, due to the availability of opportunities.
Research from the economist Raj Chetty, for one, indicates that poor children born in certain
cities, are less likely than their counterparts to climb the socioeconomic ladder, which could
be due to issues such as the quality of public schools, and the strength of local economies.
As generations come to pass, the stability of the middle-class varies,
as some Americans move in and out of the middle-class within generations.
9. Fear of Missing Out FOMO as they call it, is something
the middle-class are known for. Ever wondered why some group of people are always picking up similar
travel destinations, or owning similar gadgets? Most of the time, it’s stuff they are hardly
passionate about, and do or buy just for the sake of it. This is because the middle-class commonly
compare themselves to peers, and to the upper class. FOMO is described as a feeling, that peers
are doing better in life, can trigger an intense existential angst known as a fear of missing out.
As a result, the middle-class ends up copying each other’s ideas, and behaviors,
as well as imitating the use of certain products, services and experiences so that they do not miss
out. This is why certain trends, gain popularity within a short span of time.
In a nutshell, the middle-class is the perfect lot to sell something trendy.
10. A “good” job If anything, the middle-class is
obsessed with the idea of a good job. Not only one that has an attractive salary, but one that offers
great benefits in the long run. Especially when it comes to health care and some retirement benefits.
A full-time job with health and retirement benefits, has long been considered one of the
cornerstones of middle-class economic security. According to the Kaiser Family Foundation, 56%
of U.S. workers receive health insurance through their employers. Among all civilian employees,
27% have access to a pension plan, and 58% have access to a retirement savings plan such as a
401(k). Another separate research discovered that 47% of Americans have these “good jobs”.
Even if you’re not depending on your employer’s 401(k) contributions,
if you’re in the middle-class, you’re more likely to have a retirement savings plan.
Well, guys those are a couple signs that you could be in the middle class.
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