I'm sure there are experts who have given much more thorough and well-researched information on that, but I thought there might be value in sharing a few anecdotes about the cost of things and how that's changed in my adulthood.
I'm fairly certain experts speculate that inflation is at or should be at 5% each year. Since I'm approximating 12-14 years, the delineated prices should be 60%-70% higher in 2014 than in 2002. Have a look and let me know what you think.
Mailing a 5 oz CD or DVD, USPS cheapest/first class mail (I did this a lot because I used to sell mail-order albums, so I remember the weight and cost).
In 2002: $1.01-1.15
In 2014: $2.32
Increase in price: over 100%
University of California San Diego annual tuition, in state (prices same throughout UC system, including UCLA, UCSC, UC Irvine, etc.)
In 2002: $3834
In 2014: $12,192
(Note: $12,000 is just for tuition. It doesn't include rent, food, books, or other living expenses.)
Increase in price: over 200%
Community College in California, per credit, was the following:
In 2000: $11
In 2014: $46
Increase in price: over 300%
It kind of bums me out for the young people who are about to enter college and/or (trying to) enter the workforce now or soon. Seems bleak if you're trying to educate and gainfully employ yourself... Didn't even touch on credit card and housing prices - I have a feeling their numbers are even more dire.
I've spoken with a few people from the baby boomer generation (or older), and this is hard for them to grasp. They come from a time where hard work and education did EQUAL the American dream of owning your own home, supporting and raising a family, and retiring with benefits that allow comfort and care into old age.
But within 10-15 years, my generation and those after me, are seeing our expenses double, triple and quadruple. Increasingly, it seems the deck is stacked against achieving what the American Dream used to be. What's the new American Dream?
