20+ Average Monthly Expense Statistics [2023]: Average Household Spending In America - Zippia (2024)

Research Summary: Ever wonder how your average spending per month stacks up against other Americans? The fact is that most of our average monthly expenses are common and unavoidable, but that doesn’t mean you won’t be surprised by how much you’re actually spending. To learn more about average household monthly expenses in the US, we’ve gathered all of the latest statistics. According to our extensive research:

• Average monthly personal expenses in the US are $3,405.

• Average monthly household expenses in the US are $5,577.

• The number one category of spending for US households is housing, with the average cost being $1,885 or over 33% (one-third) of total spending.

• Over 75% of American incomes are devoted to living expenses.

For further analysis, we broke down the data in the following ways:
Average Spending | Monthly Spending | Income and Spending | Other Spending

Average Spending Statistics

Average monthly spending and average annual spending are intrinsically connected, with costs adding up over time. To find out more about typical spending, here are some key facts:

1. The average annual spending for American households is $66,928.

   That’s a whopping 75.7% of the average yearly income of $87,432, meaning the average American household only keeps a meager $20,500 of their total income per year.

2. The average monthly household expenses for a family of four are $7,749.

   Families of four have the highest average monthly household expenses, even higher than a family of five or more, which average out at $7,400.

   

   Average Monthly Household Expenses By Family Size

   Family size	Average monthly expenses	Average annual expenses
   Single person	$3,405	$40,859
   Family of 2	$5,782	$69,382
   Family of 3	$6,597	$79,163
   Family of 4	$7,749	$92,989
   Family of 5	$7,400	$88,797

3. Average monthly expenses in the US have increased by over 30% between 2012-2021.

   In 2012, average monthly expenses amounted to around $4,285 per month ($51,442 per year). As of 2021, this average has increased to $5,577 per month ($66,928 per year)

   Average Monthly Household Expenses Over Time

   Year	Average monthly expenses	Average annual expenses
   2012	$4,285	$51,442
   2013	$4,258	$51,100
   2014	$4,458	$53,495
   2015	$4,665	$55,978
   2016	$4,776	$57,311
   2017	$5,005	$60,060
   2018	$5,102	$61,224
   2019	$5,253	$63,036
   2020	$5,111	$61,334
   2021	$5,577	$66,928

4. Average monthly spending increased by 6% between 2020-2021.

   Many Americans conserved money in 2020 due to the effects of the pandemic, leading to decreased spending between 2019-2020. However, since 2020, spending has once again started increasing year over year.

5. The categories with the biggest overall gain in spending between 2020-2021 were Entertainment and Apparel and services (both +22%).

   Spending on these two categories increased by +22% year-over-year. Despite the fact that these both make up a smaller portion of monthly expenses and that they saw significant declines between 2019-2020, recent years have seen their cost increasing.

   

   Year Over Year Spending Changes By Category

   Category	Year-over-year change in spending (2020-2021)
   Entertainment	22%
   Apparel and services	22%
   Food	13%
   Transportation	11%
   Insurance and pension	9%
   Housing	6%
   Healthcare	5%

Monthly Spending by Category

Americans can spend a lot more or less of their income depending on the particular expenses they have. For example, someone with hefty student loans will have much greater expenses than someone without. For other examples of average monthly spending by category, here are some interesting statistics:

• Housing eats up the largest share of monthly American earnings, at over 33%.

  See Also

  Why Being Single Is So ExpensiveWhat It’s Really Like to Live on $50K, $300K and $1MHow to Live Alone: 12 Ways to Embrace ItWays To Take Care Of Your Mental Health While Living Alone

  Americans spend a large portion of their monthly income on housing, with even the second largest expense, transportation, approximating less than half that share.

  

  Share Of Average Monthly Expenses By Category

  Category	Share of monthly expenses	Average monthly expense
  Housing	33%	$1,885
  Transportation	16%	$913
  Food	13%	$691
  Insurance and pension	12%	$656
  Healthcare	8%	$454
  Entertainment	5%	$297
  Cash contributions	4%	$201
  Apparel and services	3%	$146
  Education	2%	$102
  Misc.	1%	$82
  Personal care	1%	$64
  Alcoholic beverages	<1%	$46
  Tobacco/smoking products	<1%	$28
  Reading	<1%	$10

• Per person, Americans spend an average of $1,233 on debt per month.

  Debt can be a huge contributor to monthly expenses for Americans, especially those who have a mortgage, auto loan, or student loan.

  Average Monthly Debt By Category

  Type of debt	Average monthly payment
  Mortgage Payments	$1,105
  Car Payments	$493
  Personal Loan Payments	$458
  Student Loan Payment	$300
  Credit Card Payments	$244
  Other Debts	$248

Income and Spending Statistics

Americans spend a large portion of their income on a variety of things each month, with each of those categories having deeper disparities among them. Here are some stats that show the relationship between income and spending in the US:

• Of the 75% of income spent on expenses, 29% goes toward Housing.

  Meanwhile, 14% of it goes toward transportation, and another 11% goes toward food, making these the expenses with the largest impact on someone’s income.

  

  Monthly Expenses By Average Share Of Income

  Category	Percent of total income
  Housing	29%
  Transportation	14%
  Food	11%
  Insurance and pension	10%
  Healthcare	7%
  Entertainment	5%
  Cash contributions	3%
  Apparel and services	2%
  Education	2%
  Misc.	1%
  Personal care	1%
  Alcoholic beverages	1%
  Tobacco/smoking products	<1%
  Reading	<1%

• The average individual spends 55% of their monthly income on expenses.

  The average monthly personal income for Americans is $6,228, with the average personal expense being $3,405 per month. This means individuals often sacrifice less of their income in expenses when compared to families and households.

• The average American household spends 82% of its income on expenses.

  Despite making more money on average, American households have far more expenses than the average individual. This often comes down to an increased likelihood of having a mortgage and other debts.

• The average household spends 17% of their income on mortgage payments.

  Mortgage payments alone cost the average person $1,105, making it the largest contributor to why housing is so expensive. Other housing-related expenses include:

  Average Monthly Housing Expenses

  Expense	Percent of total income	Average monthly expense
  Mortgage payment	17%	$1,105
  Utilities/fuels/public services	5%	$352
  Furniture/appliances	3%	$225
  Household operations	2%	$137
  Housekeeping supplies/laundry	1%	$67

• The average household spends 6% of their income on vehicle purchases.

  Once again, debt is the largest contributing factor to monthly expenses. In this context, that debt is typically auto payments. However, there are other transportation costs to consider as well:

  Average Monthly Transportation Expenses

  Expense	Percent of total income	Average monthly expense
  Vehicle purchases	6%	$402
  Gas and oil	3%	$179
  Insurance	2%	$127
  Maintenance/repairs	1%	$81
  Rental/leases/fees	1%	$63
  Public transportation	1	$38
  Vehicle finance charges	<1%	$23

• The average household spends 5% of their income on health insurance.

  See Also

  Living Alone Can Cost You As Much As $19,500 More a Year Vs. Sharing Space, Says Zillow

  Though healthcare is a free or negligible expense in many other developed countries, the US stands out as one with exorbitant healthcare costs. Regardless of the ethics, it’s important to budget for these costs:

  Average Monthly Healthcare Expenses

  Expense	Percent of total income	Average monthly expense
  Health insurance	5%	$309
  Medical services	1%	$89
  Prescription drugs	1%	$42
  Medical supplies	<1%	$15

• The average American spends 9.58% of their income on debt.

  You might think this number would be higher, but the fact is that Americans across the country are in a variety of different situations, making it difficult to access just how much debt can burden some.

Other Spending Categories

As Americans, we spend a lot of money per month. Some of these expenses are unavoidable, while others are for our own entertainment and recreation. Here are some additional and interesting facts about where our money goes:

• Americans spend an average of $46 per month on alcoholic beverages.

  Between that and the $28 spent on tobacco and smoking products, Americans spend more money (on average) on these products over personal care ($64).

• Americans spend a whopping average of $531 per month on home and vehicle fuels.

  More specifically, utilities and fuel for housing cost an average of $352 per month, while filling the tank of your car costs an average of $179 per month.

• Americans spend $64 dollars per month on their pets.

  As it turns out, cat foods might cost upwards of $770 per year, even without professional grooming for the cat show.

• Clothing and associated costs lead to an average of $146 in expenses per month.

  And considering the fact that the cost of clothing has increased significantly since 2020, spending on clothing can easily harm your budget in 2023.

Monthly Expenses FAQ

1. How much are monthly living expenses for a single person?

   Monthly expenses for a single person in the US are around $3,405. This equates to approximately $40,859, which is considerably less than households with two or more people.

   Individuals also sacrifice less of their income, on average, to expenses than larger households. The average individual only spends 55% of their total income on expenses, while the average household can spend up to 82%.

2. What is a reasonable monthly budget?

   A reasonable monthly budget should follow the 50-30-20 rule. This rule is a budgeting plan where 50% of your income is spent on needs, 30% on wants, and 20% goes into your savings.

   This plan would put you well above the pack when it comes to savings, as only 16% of Americans save more than 15% of their annual income. For example, if you made $50,000 per year, this plan would allow you to save $10,000 in that same year.

   It also helps you manage your expenses, so you can determine whether or not you’re spending too much and if you need to trim down what you’re spending.

3. What are the average monthly expenses for a family of four in the US?

   The average monthly expense for a family of four in the US is $7,749. This is equal to $92,989 and more than any other size family’s expenses. In fact, those with over five children actually spend an average of $7,400 per month, or 4.5% less than a family of four. Likewise, a family of three spends 14.9% less per month than a family of four.

4. What do Americans spend the most money on?

   Americans spend the most money on housing. Housing constitutes 33% of all expenses and 29% of all household income spent on monthly expenses.

   The total cost of housing spending averages out at $1,885, with $1,105 of that going to mortgage payments. Between debt, utilities, and maintenance, the cost of housing is more than double that of the next runner-up: Transportation.

   Additionally, these costs will likely continue to increase as housing prices and interest rates remain above average.

Conclusion

American households spend an average of $5,577 per month on everyday expenses. This equates to an incredible 75% or more of their average income.

While income is spent on a variety of expenses, the top three are Housing, Transportation, and Food, which make up 29%, 14%, and 11% of household income, respectively. Mortgage payments alone cost Americans an average of $1,105 per month.

And Mortgage payments highlight just how much debt impacts expenses. Americans spend most of their income on home, auto, and student loan payments.

When in doubt, if you’re concerned about your expenses, it’s important to analyze them. Afterward, you can utilize the information you uncovered to develop an effective budgeting plan.

References

1. BLS – Consumer expenditures in 2020

2. BLS – Consumer Expenditure Surveys

3. First Republic Bank – A Look at the Average American’s Monthly Expenses

4. Bankrate – What Americans spend: A look at the cost of housing, food, transportation and more

5. Lendingtree – Average Monthly Debt Payments Throughout the U.S.