Rites of Passage
My son just graduated from high school. He and an estimated 3.9 million other U.S. high school students count themselves as the Class of 2025. The change from high schooler to college or trade-school student, full-time worker, apprentice/journeyman, member of the armed forces or gap year participant is now setting in as reality.
Most Americans participate in some sort of ceremonial event tied to graduation from high school. These rituals come in different shapes and sizes, from being handed a diploma to having an open house party with friends and family. In anthropology, these transitions that mark an individual’s transition from one status, group, or stage of life to another are called rites of passage.
It’s crazy to think of life’s many rites of passage and the intersection of these events with one’s personal financial picture. Here are a just a few examples:
Rite of Passage | Rituals | Financial Implications* |
Birth | Baby showers, gender reveal parties | Becoming a parent is one of the most time-consuming and costly decisions a person can make. 2025 estimates are that it will cost between $297k and $318k to raise a child from birth to 18 years old. |
Graduations | High school, trade school, college | Public school is free, but private schools can cost tens of thousands per year. A four-year college degree is now estimated to cost approximately $118k for a public in-state school. Prices increase for out-of-state or private schools to upwards of $250k. |
Marriage | Weddings, honeymoons | The average wedding in 2025 is $33k. Top tier weddings fall between $30k and $45k. Most couples spend between $3k and $8k for a one-week honeymoon. |
Retirement | Departing the workforce, travel, hobbies, healthcare | How much one needs for retirement is a complex formula. It starts with lifestyle and age and adds a variety of factors such as inflation, rates of return, healthcare, housing, lifespan, etc. THERE IS NO UNIVERSAL ANSWER. RETIREMENT CALCULATIONS SHOULD BE BASED ON A HOLISTIC PERSONALIZED FINANCIAL PLAN. However, according to some recent studies that are very generic in scope, the number is around $1.25 million or more. |
Death | Nursing care, palliative care, hospice, wills/trusts/estates, funerals | Nobody gets out of this life alive. Quality of life issues are often top in terms of concerns, but there are myriad money issues. Estate planning encapsulates many of these financial, tax, and legal issues associated with the end of a life. |
*Source for various numbers gathered through Perplexity.ai
Each person’s journey on earth is unique, but we share many experiences that are both obvious and latent through our common culture. Finance is part of this story. More specifically, our financial behaviors – meaning our relationship with money and our decisions around it – can have an outsized impact in each person’s life. So, be aware of money and its gravity and opportunity as you fly through life. It all goes fast! I can say this for certain as we once again congratulate the graduating Class of 2025! And best of luck to everyone going through one of life’s many rites of passage!