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. So, how does your household compare?

BLS.gov, 2023

Housing

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

Bureau of Labor Statistics, 2023
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, 2023
17%

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, 2023
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, 2023
11.4%

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, 2023
8.2%

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, 2023
5%

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, 2023
3%

of the average American budget

$1,888

Apparel

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

Bureau of Labor Statistics, 2023
3%

of the average American budget

$1,866

Have A Question About This Topic?

Thank you! Oops!

Related Content

Financial Aid for Students 101

Financial Aid for Students 101

Help your college-bound child explore scholarships, grants, and more with this article on paying for higher education.

Impact Investing or Philanthropy

Impact Investing or Philanthropy

This fun piece can help your clients explore the benefits of impact investing versus founding a philanthropy.

Understanding FDIC Insurance

Understanding FDIC Insurance

FDIC insurance was designed to protect your deposited funds, but do you know how? This article answers that question.