How Much Does the “American Dream” Cost vs. Living the “Tico Dream” in Costa Rica?

The famous American Dream is becoming more expensive than ever. A recent analysis by Investopedia, reported by USA Today, estimated that reaching the eight pillars of the American dream — from owning a home to raising children and retiring comfortably — now costs more than 5 million dollars over a lifetime.

The Cost of the American Dream

According to the report, here are the major expenses:

• Comfortable retirement: $1.6 million
• Homeownership: $957,594
• New cars (replaced every 10 years): $900,346
• Raising two kids plus college: $876,092
• Quality healthcare: $414,208
• Annual vacations: $180,621
• Pets: $39,381
• Wedding: $38,200
• Total: $5,043,323

That’s a daunting figure compared to the average lifetime earnings of a U.S. worker with a bachelor’s degree: $2.8 million.

The Contrast: Living the “Tico Dream”

Costa Rica, one of the top destinations for expats, offers a lifestyle that is comparable — and often better in quality — at just a fraction of the cost.

Here’s a side-by-side look:

• Retirement: Many retirees live comfortably in Costa Rica on $2,500 – $3,500 per month or less, depending on the location. Over 25 years, that comes to less than $900,000, almost half of what’s estimated in the U.S.
• Homeownership: Homes outside the Central Valley can range between $150,000 – $250,000, and even in beach towns, you can find good options for $300,000 – $400,000 or sometimes less — far below the U.S. average.
• Cars: While cars are more expensive due to import taxes, most expats get by with a reliable used car or even no car at all, relying instead on excellent and affordable public or private transport. This greatly reduces costs compared to replacing new cars every decade.
• Raising kids and education: Public education is free, and state universities are excellent and affordable. Even private schools and universities cost much less than in the U.S. Christopher Howard paid less than $1000 per month for his son to attend an exclusive private bilingual high school and only $3000 a year for a first-rate private university in Costa Rica.
• Healthcare: The national healthcare system (Caja Costarricense de Seguro Social) is universal and very affordable. Private care is also a fraction of U.S. costs.
• Vacations: In Costa Rica, with beaches, mountains, and volcanoes only hours apart, a “vacation” can mean a weekend getaway to paradise for under $300.
• Pets: Veterinary care and pet supplies are much less expensive than in the U.S.
• Weddings: Costa Rica is a popular destination for weddings on beaches and haciendas. Costs vary, but they are often lower than the U.S. average.

Final Thoughts

While the “American Dream” seems to be slipping out of reach for many due to skyrocketing costs, Costa Rica offers a version of the dream that is not only more affordable but also richer in quality of life.

For many expats, the “Tico Dream” means living surrounded by nature, enjoying accessible healthcare, and embracing a culture centered around Pura Vida.

👉 Want to find out if Costa Rica could be your next home or retirement destination? Join one of our Live in Costa Rica Tours and experience the Pura Vida lifestyle firsthand.