When it comes to financial planning, many people underestimate the true cost of life’s biggest expenses. Let’s put your knowledge to the test. Write down your answers and see how many you got right at the end!
Answer 1: B) A 2025 Honda Civic
The average in-state tuition and fees for a public four-year college is $11,950 for the 2025–2026 academic year. A 2025 Honda Civic starts at $24,250 MSRP—more than double the cost of one year’s tuition.
Many people assume college is outrageously expensive, but seeing it compared to a new car can put things in perspective. Still, $11,950 per year (and rising) means roughly $48,000 before room and board. Planning ahead through education savings strategies can make a significant difference.
Answer 2: A) Health care out-of-pocket expenses
Projected lifetime premiums for traditional Medicare options for a healthy 65-year-old couple retiring in 2026 are estimated at $688,996. By comparison, the median home price in Colorado is approximately $540,183.
That’s a striking comparison. Many retirees dream about buying a second home, but fewer fully account for the substantial cost of health care over a 20- to 30-year retirement. Health expenses are often one of the largest line items in a retirement plan.
Answer 3: A) One year in a private nursing home
A one-way private jet charter from New York City to Los Angeles can cost roughly $50,000 to $100,000, depending on aircraft and timing. Meanwhile, the national average cost of a private nursing home room exceeds $100,000 per year.
While few people plan to need extended nursing care, statistically, many will. Exploring long-term care insurance or setting aside assets for this possibility is an important part of a comprehensive strategy.
Answer 4: A) The coffee habit
Spending $5 a day, five days a week, equals $1,300 per year, or $39,000 over 30 years(without accounting for inflation). Paying $1,200 annually in life insurance premiums totals $36,000 over 30 years.
Small, consistent expenses can quietly rival major financial commitments. This doesn’t mean you should give up coffee, but it does highlight how everyday habits can impact long-term financial health.
Many people are surprised at the true cost of tuition, health care, and long-term care. That’s exactly why planning matters. Understanding these numbers helps you prepare—not react.
SOURCES
https://research.collegeboard.org/trends/college-pricing/highlights
https://cochamber.com/scorecard/cost-of-living/
https://www.medicare.org/articles/important-reasons-to-plan-ahead-for-long-term-care/
https://www.kiplinger.com/retirement/medicare/what-you-will-pay-for-medicare-in-2025
https://www.paramountbusinessjets.com/private-jet-charter/cities/new-york-to-los-angeles
https://www.seniorliving.org/nursing-homes/costs/
https://grantsforseniors.org/long-term-care-insurance-for-seniors/