Money

The Average American Budget

The Average American Budget

According to the Bureau of Labor Statistics, the average American household earns an average of $82,852 a year before taxes and spends almost 80% of their available income on basic necessities such as housing, food, and clothing.

Bureau of Labor Statistics, 2021

Housing

The average American spends roughly 33% of their income on shelter. This can include property rental, mortgage interest, property taxes, maintenance, repairs, and home insurance.

Bureau of Labor Statistics, 2021
33%

of the average American budget

$20,091

Transportation

Americans spend an average of 17% of their total income on transportation, including the purchase and upkeep of their vehicle.

Bureau of Labor Statistics, 2021
16%

of the average American budget

$9,761

Food

Whether cooking at home or eating out, Americans spend an average of 13% of their income on food.

Bureau of Labor Statistics, 2021
13%

of the average American budget

$7,203

Insurance

After the “basic needs” are covered, Americans spend an average of 11.4% of their income on personal insurance and pensions.

Bureau of Labor Statistics, 2021
12%

of the average American budget

$6,831

Healthcare and Health Insurance

The average American household spends an average of 8.2% of their total income on health care and health insurance.

Bureau of Labor Statistics, 2021
8%

of the average American budget

$4,968

Entertainment

At the end of the day, Americans still manage to spend an average of 5% of their income on entertainment.

Bureau of Labor Statistics, 2021
4%

of the average American budget

$3,226

Cash Contributions

Americans value charitable giving by spending an average of 3% of their income on cash contributions.

Bureau of Labor Statistics, 2021
3%

of the average American budget

$1,888

Apparel

Finally, Americans spend 3% of their total income on apparel.

Bureau of Labor Statistics, 2021
3%

of the average American budget

$1,866

 

Related Content

18 Years’ Worth of Days

18 Years’ Worth of Days

The average retirement lasts for 18 years, with many lasting even longer. Will you fill your post-retirement days with purpose?

From Boats to Brokers

From Boats to Brokers

From the Dutch East India Company to Wall Street, the stock market has a long and storied history.

The Financial Literacy Crisis

The Financial Literacy Crisis

Many Americans are operating their personal finances with only the barest minimum of knowledge.

 

Have A Question About This Topic?







Thank you! Oops!

Earnings for All Seasons

Earnings season can move markets. What is it and why is it important?

Social Security: The 64,000 Dollar Question

One of the most common questions people ask about Social Security is when they should start taking benefits.

What Is a Roth 401(k)?

Roth 401(k) plans combine features of traditional 401(k) plans with those of a Roth IRA.

View all articles

Contributing to an IRA?

Determine if you are eligible to contribute to a traditional or Roth IRA.

Annuity Comparison

This calculator compares a hypothetical fixed annuity with an account where the interest is taxed each year.

Capital Gains Tax Estimator

Use this calculator to estimate your capital gains tax.

View all calculators

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

View all presentations

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

Surprises

Making the most of surprises is a great reason to work with us.

An Arm and a Leg

A visit to the hospital can be painful, for both your body and your wallet. Don’t let it be more painful than it has to be.

View all videos