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American Households' Average Monthly Expenses: $v,111

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The boilerplate monthly expenses for American households are $5,111, according to the about contempo Consumer Expenditure Survey from the U.S. Agency of Labor Statistics (BLS).

Where does all that coin get? 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.

By peeking into the national average budget for all these categories, we can get a ameliorate idea of where people spend the most and how our own spending habits compare.

Key findings

The average household's monthly expenses are $5,111 ($61,334 per twelvemonth).
The average annual income after taxes is $74,949.
Housing is the largest average cost at $1,784 per month, making up 34.ix% of typical spending.
Americans spend $610 on food per month, with about two-thirds being spent on groceries and the rest on eating out.
Transportation costs more than than many realize ($819 per month), largely due to the intermittent nature of these expenses.
Healthcare spending averages $431 per month.
The boilerplate single person spends $329 more per year than their take-home pay.

Average monthly expenses per household: $5,111

The boilerplate expenses per month for 1 consumer unit in 2022 was $5,111. That means the average spending per year is $61,334.

Keep in listen that living cost 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 of america had been steadily increasing, only 2022 was a deviation from that tendency, likely because of the COVID-19 pandemic. Average expenses decreased by 2.seven% from 2022 to 2022.

You might be wondering what exactly counts every bit a consumer unit. The BLS defines a consumer unit of measurement as any of the following:

Families
Single persons living alone
Unmarried persons sharing a household with others but are financially independent
Two or more than people living together and sharing major expenses

For example, two parents and a kid would be one consumer unit of measurement. Three roommates would be 3 consumer units. The average consumer unit is 2.5 people.

Boilerplate annual income per household: $74,949

The average American household's almanac income after taxes is $74,949. Average pre-tax income is $84,352.

Based on the income and spending figures, Americans spend 82% of their income after taxes and have a savings rate of 18%. That's close to the recommended savings rate of at least 20%.

While the amount you salvage is well-nigh important, where yous put that money also matters. The all-time option is a high-yield savings business relationship to maximize the interest y'all earn.

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Where Americans spend their money

Here's a full breakdown of the boilerplate spending by category:

Item	Monthly cost	Annual toll	Per centum of spending
Housing	$1,784	$21,409	34.9%
Transportation	$819	$ix,826	16.0%
Personal insurance and pensions	$604	$seven,246	11.eight%
Healthcare	$431	$v,177	8.four%
Groceries	$412	$4,942	8.ane%
Entertainment	$243	$2,912	4.7%
Restaurants and other meals away from dwelling	$198	$2,375	3.nine%
Greenbacks contributions	$190	$ii,283	iii.7%
Dress and services	$120	$1,434	2.3%
Teaching	$106	$1,271	2.1%
Miscellaneous	$76	$907	ane.5%
Personal care	$54	$646	1.1%
Alcoholic beverages	$40	$478	0.8%
Tobacco/smoking products	$26	$315	0.5%
Reading	$10	$114	0.2%
TOTAL SPENDING	$five,111	$61,334

Data source: U.S. Bureau of Labor Statistics (2021).

A quick notation about monthly spending

The BLS survey merely calculates annual spending, and then nosotros divided those numbers by 12 to get the average household expenses per month. Because we rounded to the nearest dollar, there may be small discrepancies when comparison the monthly and almanac numbers.

Information technology's also worth noting that non all of the typical expenses are monthly expenses. Some of these expenses are intermittent. For instance, most people aren't spending $196 per month on furniture and appliances. Just over the form of the twelvemonth, the average is $2,346.

Boilerplate monthly spending on housing: $one,784 (34.9%)

Housing is the biggest living expense in the national boilerplate budget by a wide margin, and it increased by 3.5% in 2022.

Of the $i,784 per month that Americans spend on housing, $ane,050 of it goes towards housing payments. This fluctuates quite a flake depending on a person'south living state of affairs. Boilerplate housing costs can be anywhere from nether $i,000 to over $3,000 depending on the area. Housing size and whether a person has roommates also have a big impact on how much they spend here.

Here's a more detailed look at the different expenses of home ownership 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
Article of furniture/appliances	$196	$2,346
Household operations	$122	$ane,465
Housekeeping supplies/laundry	$lxx	$837

Data source: U.S. Agency of Labor Statistics (2021).

Average monthly spending on transportation: $819 (sixteen.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 2022 to 2022.

Information technology'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, only they add together upwardly to $879 per year. Well-nigh people don't buy new vehicles often, simply when they do, it's a major purchase. Depending on the payment schedule y'all choose, motorcar insurance could be a monthly expense or i that y'all 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

Data source: U.S. Agency of Labor Statistics (2021).

Average monthly nutrient spending: $610 (12.0%)

Food spending includes groceries and nutrient abroad from habitation, which is whatsoever food that you pay someone else to prepare for you. It decreased past ten.four% from 2022 to 2022.

There'southward 1 clear reason for that drop in nutrient spending, and information technology probably won't come equally a surprise because the circumstances in 2022: people seriously cut back on dining.

The average American spent over $1,000 less on food away from dwelling in 2022 ($2,375) than in 2022 ($3,526). Overall, spending dropped by 32.6% in this category. Grocery spending, on the other hand, increased by six.4%. If you lot've seen your own supermarket spending increase, a grocery credit card could help you save on that.

Food expense	Average monthly spending	Average annual spending
Groceries	$412	$4,942
Food away from home	$198	$2,375

Data source: U.Southward. Bureau of Labor Statistics (2021).

Average monthly personal insurance and alimony spending: $604 (11.8%)

Personal insurance and pensions deemed for $604 in monthly spending. That was a slight (1.i%) increment from 2022.

To analyze, this category includes life insurance, personal liability insurance, accident insurance, and disability insurance. It doesn't include homeowners insurance or renters insurance, which are part of housing costs, or auto insurance, which is part of transportation.

Merely half dozen.7% of spending in this category goes towards personal insurance. The remaining 93.3% 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 alimony expense	Average monthly spending	Boilerplate annual spending
Personal insurance	$41	$486
Pensions/Social Security	$563	$vi,760

Data source: U.Southward. Bureau of Labor Statistics (2021).

Boilerplate monthly healthcare spending: $431 (8.4%)

Despite the COVID-19 pandemic, healthcare spending didn't change much in 2022. Information technology decreased past 0.3% from the previous year.

Just over 70% of that spending went towards wellness insurance premiums, which cost an average of $306. That probably sounds low for health insurance. It'south partly because many people pay less due to revenue enhancement credits, employer-paid premiums, Medicare, and Medicaid. In addition, eight.half-dozen% of Americans don't have wellness insurance, co-ordinate to the U.S. Demography Agency.

Healthcare expense	Average monthly spending	Average annual spending
Wellness insurance	$306	$3,667
Medical services	$72	$864
Drugs	$40	$476
Medical supplies	$xiv	$170

Data source: U.S. Bureau of Labor Statistics (2021).

Average monthly spending on entertainment: $243 (4.7%)

Americans spend 4.7% of their monthly budgets on entertainment. Spending in this category decreased past five.8% in 2022.

The BLS fabricated some interesting decisions in what was and wasn't considered entertainment. Every bit entertaining equally pets can be, pet owners would probably debate that they deserve their ain category. Avid readers may exist surprised to learn that reading doesn't fall nether amusement (it has its own category instead).

Amusement expense	Boilerplate monthly spending	Boilerplate annual 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

Data source: U.S. Bureau of Labor Statistics (2021).

Boilerplate monthly spending on clothes and services: $120 (two.three%)

It'southward safe to say that people weren't too concerned nearly dressing up during the early days of the pandemic. Dress spending plummeted in 2022, dropping by 23.8% from the twelvemonth before.

Apparel and services expense	Average monthly spending	Average almanac spending
Men and boys	$27	$326
Women and girls	$45	$545
Children under 2	$half-dozen	$68
Footwear	$26	$314
Other apparel and services	$15	$181

Data source: U.Southward. Bureau of Labor Statistics (2021).

Boilerplate monthly expenses past household size

So far, we've looked at the average 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, yous're probably interested in the average monthly expenses for one person. And those with larger families may desire to meet what the typical spending habits are like in similar households.

Equally it turns out, single-person households have information technology much harder financially than households with 2 or more people. In fact, single people spent $329 per year more than their later on-taxation income.

Household size	Average monthly spending	Boilerplate annual spending	Average income after taxes
1 person	$3,241	$38,895	$38,566
Two people	$5,271	$63,254	$78,108
3 people	$five,812	$69,740	$89,187
Four people	$7,005	$84,056	$109,306
Five people	$6,746	$80,954	$108,451

Data source: U.S. Bureau of Labor Statistics (2021).

How do your average monthly expenses compare?

Information technology's interesting to see what the typical American spending habits look like and compare them to your own. Maybe you detect that you spend like portions of your monthly income in each category, or your spending patterns could be completely unlike.

Neither on its own is a good or a bad thing. We all have different things we value and different areas where we're willing to spend more than coin. If you're happy with your spending habits and you experience financially secure, that's what's important.

If you're not able to save as much money equally yous like, and then it's a good idea to reevaluate your typical spending and your budget. Whether information technology'south dining out, amusement, or something else, there could be an surface area where you're spending more than than you realize and are able to cut dorsum.

Sources

U.S. Bureau of Labor Statistics (2021). "2020 Consumer Expenditure Survey."
U.Due south. Bureau of Labor Statistics (2021). "Consumer expenditures in 2022."
U.S. Bureau of Labor Statistics (2021). "Tabular array 1400. Size of consumer unit: Almanac expenditure means, shares, standard errors, and coefficients of variation, Consumer
Expenditure Surveys, 2022."
United states of america Census Bureau (2021). "Health Insurance Coverage in the United States: 2022."