How Much Money Does An Average Person Spend Per Week
American Households' Average Monthly Expenses: $5,111
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The boilerplate monthly expenses for American households are $5,111, according to the almost contempo Consumer Expenditure Survey from the U.Southward. Bureau of Labor Statistics (BLS).
Where does all that money go? For the typical person, information technology covers quite a few different things from major costs similar payments to their mortgage lender and groceries to smaller expenses like apparel.
Past peeking into the national average budget for all these categories, nosotros can become a improve idea of where people spend the almost and how our own spending habits compare.
Fundamental findings
- The average household's monthly expenses are $5,111 ($61,334 per year).
- The average annual income after taxes is $74,949.
- Housing is the largest average cost at $1,784 per month, making up 34.9% of typical spending.
- Americans spend $610 on food per month, with about two-thirds existence spent on groceries and the rest on eating out.
- Transportation costs more than many realize ($819 per month), largely due to the intermittent nature of these expenses.
- Healthcare spending averages $431 per calendar month.
- The average single person spends $329 more per twelvemonth than their take-home pay.
Boilerplate monthly expenses per household: $five,111
The average expenses per calendar month for ane consumer unit in 2020 was $five,111. That ways the average spending per twelvemonth is $61,334.
Go on in heed that living toll varies by region -- some cities are very affordable, while others are extremely expensive. The figures presented below are national averages.
Consumer spending in the United States had been steadily increasing, but 2020 was a deviation from that tendency, likely because of the COVID-19 pandemic. Boilerplate expenses decreased by 2.7% from 2019 to 2020.
Yous might exist wondering what exactly counts as a consumer unit. The BLS defines a consumer unit of measurement as any of the following:
- Families
- Unmarried persons living alone
- Single persons sharing a household with others only are financially independent
- Ii or more people living together and sharing major expenses
For example, two parents and a child would exist 1 consumer unit. Three roommates would be three consumer units. The average consumer unit is two.5 people.
Average almanac income per household: $74,949
The average American household's annual income later on taxes is $74,949. Boilerplate pre-tax income is $84,352.
Based on the income and spending figures, Americans spend 82% of their income later taxes and have a savings rate of 18%. That's close to the recommended savings rate of at least twenty%.
While the amount you save is most important, where you put that money also matters. The all-time option is a high-yield savings account to maximize the interest yous earn.
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Where Americans spend their money
Hither'southward a full breakdown of the average spending by category:
| Item | Monthly price | Almanac cost | Percentage of spending |
|---|---|---|---|
| Housing | $i,784 | $21,409 | 34.nine% |
| Transportation | $819 | $9,826 | xvi.0% |
| Personal insurance and pensions | $604 | $7,246 | 11.8% |
| Healthcare | $431 | $5,177 | 8.4% |
| Groceries | $412 | $4,942 | 8.1% |
| Entertainment | $243 | $2,912 | 4.7% |
| Restaurants and other meals away from domicile | $198 | $2,375 | iii.9% |
| Cash contributions | $190 | $2,283 | 3.seven% |
| Dress and services | $120 | $ane,434 | 2.three% |
| Education | $106 | $1,271 | 2.1% |
| Miscellaneous | $76 | $907 | ane.5% |
| Personal care | $54 | $646 | 1.1% |
| Alcoholic beverages | $forty | $478 | 0.eight% |
| Tobacco/smoking products | $26 | $315 | 0.5% |
| Reading | $x | $114 | 0.2% |
| Full SPENDING | $5,111 | $61,334 |
Data source: U.S. Bureau of Labor Statistics (2021).
A quick note virtually monthly spending
The BLS survey only calculates annual spending, and so we divided those numbers past 12 to get the boilerplate household expenses per calendar month. Because we rounded to the nearest dollar, there may be small discrepancies when comparing the monthly and annual numbers.
It'due south as well worth noting that not all of the typical expenses are monthly expenses. Some of these expenses are intermittent. For example, almost people aren't spending $196 per calendar month on piece of furniture and appliances. Merely over the grade of the year, the average is $2,346.
Boilerplate monthly spending on housing: $1,784 (34.9%)
Housing is the biggest living expense in the national average upkeep by a wide margin, and information technology increased past 3.5% in 2020.
Of the $1,784 per calendar month that Americans spend on housing, $ane,050 of it goes towards housing payments. This fluctuates quite a flake depending on a person's living state of affairs. Average housing costs can be anywhere from under $ane,000 to over $3,000 depending on the area. Housing size and whether a person has roommates too accept a large impact on how much they spend hither.
Here's a more detailed expect at the different expenses of home buying and how much Americans spend on them:
| Housing expense | Average monthly spending | Average annual spending |
|---|---|---|
| Shelter | $1,050 | $12,604 |
| Utilities/fuels/public services | $347 | $4,158 |
| Furniture/appliances | $196 | $2,346 |
| Household operations | $122 | $one,465 |
| Housekeeping supplies/laundry | $seventy | $837 |
Data source: U.S. Bureau of Labor Statistics (2021).
Average monthly spending on transportation: $819 (16.0%)
Transportation is the second-largest monthly expenditure, but Americans have been spending less on it. National average transportation spending decreased by 8.5% from 2019 to 2020.
It's easy to miss just how much we spend on transportation, because some of the bigger expenses are intermittent. Maintenance and repairs aren't necessary every month, but they add together up to $879 per year. Most people don't purchase new vehicles oftentimes, merely when they do, it'due south a major purchase. Depending on the payment schedule you choose, machine insurance could be a monthly expense or i that you pay twice a year.
| Transportation expense | Average monthly spending | Average annual spending |
|---|---|---|
| Vehicle purchases | $377 | $4,523 |
| Insurance | $131 | $1,575 |
| Gas and oil | $131 | $1,568 |
| Maintenance/repairs | $73 | $879 |
| Rental/leases/fees | $63 | $758 |
| Public transportation | $22 | $263 |
| Vehicle finance charges | $22 | $258 |
Information source: U.South. Bureau of Labor Statistics (2021).
Average monthly nutrient spending: $610 (12.0%)
Nutrient spending includes groceries and nutrient away from domicile, which is any nutrient that you pay someone else to ready for you. It decreased by 10.4% from 2019 to 2020.
There'due south i clear reason for that drib in food spending, and information technology probably won't come as a surprise considering the circumstances in 2020: people seriously cut back on dining.
The average American spent over $1,000 less on food away from habitation in 2020 ($ii,375) than in 2019 ($3,526). Overall, spending dropped past 32.half dozen% in this category. Grocery spending, on the other hand, increased by half dozen.4%. If yous've seen your own supermarket spending increase, a grocery credit menu could help you relieve on that.
| Nutrient expense | Average monthly spending | Boilerplate almanac spending |
|---|---|---|
| Groceries | $412 | $4,942 |
| Nutrient away from habitation | $198 | $2,375 |
Data source: U.S. Bureau of Labor Statistics (2021).
Average monthly personal insurance and pension spending: $604 (11.8%)
Personal insurance and pensions deemed for $604 in monthly spending. That was a slight (1.1%) increase from 2019.
To clarify, this category includes life insurance, personal liability insurance, blow insurance, and disability insurance. It doesn't include homeowners insurance or renters insurance, which are office of housing costs, or auto insurance, which is part of transportation.
But 6.7% of spending in this category goes towards personal insurance. The remaining 93.iii% goes to pensions and Social Security. That category includes contributions to retirement accounts and the Social Security benefits withheld from your paycheck.
| Personal insurance and pension expense | Average monthly spending | Average almanac spending |
|---|---|---|
| Personal insurance | $41 | $486 |
| Pensions/Social Security | $563 | $6,760 |
Data source: U.Southward. Agency of Labor Statistics (2021).
Average monthly healthcare spending: $431 (8.4%)
Despite the COVID-19 pandemic, healthcare spending didn't alter much in 2020. It decreased by 0.3% from the previous year.
Just over 70% of that spending went towards health insurance premiums, which toll an average of $306. That probably sounds depression for wellness insurance. It's partly considering many people pay less due to tax credits, employer-paid premiums, Medicare, and Medicaid. In addition, 8.six% of Americans don't take health insurance, co-ordinate to the U.S. Demography Agency.
| Healthcare expense | Boilerplate monthly spending | Average almanac spending |
|---|---|---|
| Health insurance | $306 | $3,667 |
| Medical services | $72 | $864 |
| Drugs | $40 | $476 |
| Medical supplies | $14 | $170 |
Data source: U.S. Agency of Labor Statistics (2021).
Average monthly spending on amusement: $243 (four.7%)
Americans spend four.7% of their monthly budgets on entertainment. Spending in this category decreased by 5.viii% in 2020.
The BLS made some interesting decisions in what was and wasn't considered entertainment. As entertaining as pets can be, pet owners would probably debate that they deserve their own category. Avid readers may be surprised to larn that reading doesn't autumn under amusement (it has its own category instead).
| Amusement expense | Boilerplate monthly spending | Average almanac spending |
|---|---|---|
| A/V equipment and services | $87 | $1,049 |
| Pets | $58 | $690 |
| Other entertainment supplies, equipment, and services | $48 | $579 |
| Fees and admissions | $35 | $425 |
| Toys/hobbies | $14 | $170 |
Information source: U.S. Bureau of Labor Statistics (2021).
Average monthly spending on apparel and services: $120 (2.3%)
Information technology'south safe to say that people weren't likewise concerned about dressing up during the early on days of the pandemic. Apparel spending plummeted in 2020, dropping by 23.8% from the year before.
| Apparel and services expense | Average monthly spending | Average almanac spending |
|---|---|---|
| Men and boys | $27 | $326 |
| Women and girls | $45 | $545 |
| Children under ii | $6 | $68 |
| Footwear | $26 | $314 |
| Other clothes and services | $15 | $181 |
Data source: U.Due south. Bureau of Labor Statistics (2021).
Boilerplate monthly expenses by household size
And so far, we've looked at the boilerplate living expenses per consumer unit, which represents the average household. But many households won't fit into the average.
If you're a unmarried person, you lot're probably interested in the boilerplate monthly expenses for one person. And those with larger families may desire to see what the typical spending habits are like in similar households.
As it turns out, single-person households accept it much harder financially than households with two or more people. In fact, single people spent $329 per year more than their after-revenue enhancement income.
| Household size | Boilerplate monthly spending | Average annual spending | Boilerplate income afterwards taxes |
|---|---|---|---|
| One person | $three,241 | $38,895 | $38,566 |
| Two people | $5,271 | $63,254 | $78,108 |
| 3 people | $5,812 | $69,740 | $89,187 |
| Four people | $seven,005 | $84,056 | $109,306 |
| Five people | $6,746 | $eighty,954 | $108,451 |
Information source: U.S. Bureau of Labor Statistics (2021).
How do your average monthly expenses compare?
It'due south interesting to run into what the typical American spending habits wait like and compare them to your own. Maybe y'all find that yous spend similar portions of your monthly income in each category, or your spending patterns could exist completely unlike.
Neither on its own is a good or a bad thing. We all accept different things we value and different areas where we're willing to spend more money. If yous're happy with your spending habits and you feel financially secure, that's what's of import.
If you're not able to relieve as much money equally you similar, and then it's a good thought to reevaluate your typical spending and your budget. Whether it'due south dining out, amusement, or something else, there could exist an area where you're spending more than you lot realize and are able to cut back.
Sources
- U.Southward. Bureau of Labor Statistics (2021). "2020 Consumer Expenditure Survey."
- U.S. Bureau of Labor Statistics (2021). "Consumer expenditures in 2020."
- U.S. Bureau of Labor Statistics (2021). "Tabular array 1400. Size of consumer unit: Annual expenditure means, shares, standard errors, and coefficients of variation, Consumer
- Expenditure Surveys, 2020."
- United States Demography Bureau (2021). "Health Insurance Coverage in the United States: 2020."
Source: https://www.fool.com/the-ascent/research/average-monthly-expenses/
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