How Much Money Does a Family of 2 Spend on Produce Annually
American Households' Average Monthly Expenses: $five,111
Prototype source: Getty Images
The average monthly expenses for American households are $5,111, co-ordinate to the most recent Consumer Expenditure Survey from the U.Due south. Bureau of Labor Statistics (BLS).
Where does all that coin go? For the typical person, it covers quite a few unlike things from major costs similar payments to their mortgage lender and groceries to smaller expenses like wearing apparel.
By peeking into the national average budget for all these categories, we can get a better thought of where people spend the most and how our own spending habits compare.
Key findings
- The boilerplate household'south monthly expenses are $v,111 ($61,334 per year).
- The average almanac income afterward taxes is $74,949.
- Housing is the largest average cost at $1,784 per month, making upwardly 34.9% of typical spending.
- Americans spend $610 on food per month, with about ii-thirds being spent on groceries and the remainder 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 average single person spends $329 more than per year than their have-dwelling house pay.
Average monthly expenses per household: $5,111
The average expenses per month for one consumer unit in 2020 was $five,111. That means the boilerplate spending per twelvemonth is $61,334.
Go along in mind that living cost varies past 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 difference from that trend, probable because of the COVID-19 pandemic. Average expenses decreased past 2.7% from 2019 to 2020.
You might exist wondering what exactly counts as a consumer unit. The BLS defines a consumer unit as any of the following:
- Families
- Unmarried persons living alone
- Unmarried persons sharing a household with others but are financially independent
- Two or more people living together and sharing major expenses
For example, 2 parents and a child would exist one consumer unit. Three roommates would be three consumer units. The average consumer unit is 2.v people.
Boilerplate annual income per household: $74,949
The average American household's almanac income afterward taxes is $74,949. Boilerplate pre-tax income is $84,352.
Based on the income and spending figures, Americans spend 82% of their income after taxes and accept a savings rate of 18%. That's shut to the recommended savings rate of at to the lowest degree 20%.
While the amount you save is almost of import, where yous put that coin also matters. The best pick is a high-yield savings account to maximize the interest you earn.
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Where Americans spend their money
Here'due south a full breakup of the average spending by category:
| Particular | Monthly price | Annual cost | Pct of spending |
|---|---|---|---|
| Housing | $1,784 | $21,409 | 34.9% |
| Transportation | $819 | $9,826 | xvi.0% |
| Personal insurance and pensions | $604 | $vii,246 | xi.viii% |
| Healthcare | $431 | $5,177 | 8.iv% |
| Groceries | $412 | $4,942 | 8.1% |
| Entertainment | $243 | $ii,912 | 4.seven% |
| Restaurants and other meals away from domicile | $198 | $2,375 | 3.nine% |
| Cash contributions | $190 | $ii,283 | iii.7% |
| Apparel and services | $120 | $1,434 | 2.iii% |
| Education | $106 | $1,271 | two.ane% |
| Miscellaneous | $76 | $907 | 1.v% |
| Personal care | $54 | $646 | ane.ane% |
| Alcoholic beverages | $xl | $478 | 0.8% |
| Tobacco/smoking products | $26 | $315 | 0.5% |
| Reading | $10 | $114 | 0.ii% |
| TOTAL SPENDING | $5,111 | $61,334 |
Data source: U.Due south. Bureau of Labor Statistics (2021).
A quick annotation about monthly spending
The BLS survey only calculates annual spending, so we divided those numbers by 12 to become the boilerplate household expenses per month. Because we rounded to the nearest dollar, at that place may exist minor discrepancies when comparison the monthly and annual numbers.
It's also worth noting that not all of the typical expenses are monthly expenses. Some of these expenses are intermittent. For example, near people aren't spending $196 per calendar month on furniture and appliances. Merely over the course of the year, the average is $2,346.
Boilerplate monthly spending on housing: $1,784 (34.ix%)
Housing is the biggest living expense in the national boilerplate budget by a wide margin, and it increased past 3.5% in 2020.
Of the $1,784 per month that Americans spend on housing, $1,050 of it goes towards housing payments. This fluctuates quite a chip depending on a person'south living situation. Average housing costs can exist anywhere from nether $1,000 to over $3,000 depending on the area. Housing size and whether a person has roommates too have a big impact on how much they spend here.
Hither'due south a more detailed look at the different expenses of abode ownership and how much Americans spend on them:
| Housing expense | Average monthly spending | Boilerplate annual spending |
|---|---|---|
| Shelter | $1,050 | $12,604 |
| Utilities/fuels/public services | $347 | $iv,158 |
| Furniture/appliances | $196 | $2,346 |
| Household operations | $122 | $1,465 |
| Housekeeping supplies/laundry | $70 | $837 |
Data source: U.S. Bureau of Labor Statistics (2021).
Average monthly spending on transportation: $819 (xvi.0%)
Transportation is the second-largest monthly expenditure, only Americans have been spending less on it. National boilerplate transportation spending decreased by eight.5% from 2019 to 2020.
It's like shooting fish in a barrel to miss just how much nosotros spend on transportation, considering some of the bigger expenses are intermittent. Maintenance and repairs aren't necessary every calendar month, but they add together up to $879 per year. Most people don't buy new vehicles oft, merely when they practice, it'southward a major purchase. Depending on the payment schedule you choose, auto insurance could be a monthly expense or ane that yous pay twice a yr.
| Transportation expense | Average monthly spending | Average annual spending |
|---|---|---|
| Vehicle purchases | $377 | $4,523 |
| Insurance | $131 | $i,575 |
| Gas and oil | $131 | $i,568 |
| Maintenance/repairs | $73 | $879 |
| Rental/leases/fees | $63 | $758 |
| Public transportation | $22 | $263 |
| Vehicle finance charges | $22 | $258 |
Data source: U.South. Bureau of Labor Statistics (2021).
Boilerplate monthly food spending: $610 (12.0%)
Food spending includes groceries and food abroad from home, which is any food that you pay someone else to ready for yous. It decreased by 10.4% from 2019 to 2020.
In that location'south i clear reason for that drop in food spending, and it probably won't come as a surprise considering the circumstances in 2020: people seriously cutting back on dining.
The boilerplate American spent over $i,000 less on food away from home in 2020 ($2,375) than in 2019 ($three,526). Overall, spending dropped by 32.6% in this category. Grocery spending, on the other mitt, increased by 6.4%. If yous've seen your ain supermarket spending increase, a grocery credit bill of fare could help you salvage on that.
| Food expense | Average monthly spending | Boilerplate annual spending |
|---|---|---|
| Groceries | $412 | $iv,942 |
| Nutrient abroad from dwelling | $198 | $2,375 |
Information source: U.S. Bureau of Labor Statistics (2021).
Average monthly personal insurance and alimony spending: $604 (xi.8%)
Personal insurance and pensions accounted 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 inability insurance. Information technology doesn't include homeowners insurance or renters insurance, which are part of housing costs, or car insurance, which is part of transportation.
Only half dozen.seven% 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 alimony expense | Average monthly spending | Average almanac spending |
|---|---|---|
| Personal insurance | $41 | $486 |
| Pensions/Social Security | $563 | $6,760 |
Data source: U.S. Bureau of Labor Statistics (2021).
Average monthly healthcare spending: $431 (8.4%)
Despite the COVID-19 pandemic, healthcare spending didn't modify much in 2020. It decreased past 0.3% from the previous year.
Merely over seventy% of that spending went towards health insurance premiums, which cost an boilerplate of $306. That probably sounds low for health insurance. Information technology's partly because many people pay less due to tax credits, employer-paid premiums, Medicare, and Medicaid. In addition, 8.6% of Americans don't have wellness insurance, according to the U.Due south. Census Bureau.
| Healthcare expense | Average monthly spending | Average annual spending |
|---|---|---|
| Health insurance | $306 | $3,667 |
| Medical services | $72 | $864 |
| Drugs | $40 | $476 |
| Medical supplies | $14 | $170 |
Information source: U.S. Bureau of Labor Statistics (2021).
Boilerplate monthly spending on amusement: $243 (4.7%)
Americans spend iv.vii% of their monthly budgets on entertainment. Spending in this category decreased past 5.8% in 2020.
The BLS made some interesting decisions in what was and wasn't considered entertainment. Every bit entertaining as pets can be, pet owners would probably argue that they deserve their own category. Avid readers may exist surprised to acquire that reading doesn't fall under entertainment (it has its ain category instead).
| Entertainment expense | Boilerplate monthly spending | Boilerplate annual spending |
|---|---|---|
| A/5 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).
Average monthly spending on clothes and services: $120 (2.iii%)
Information technology's prophylactic to say that people weren't too concerned about dressing up during the early days of the pandemic. Apparel spending plummeted in 2020, dropping by 23.eight% from the year before.
| Wearing apparel and services expense | Average monthly spending | Average annual spending |
|---|---|---|
| Men and boys | $27 | $326 |
| Women and girls | $45 | $545 |
| Children under ii | $half-dozen | $68 |
| Footwear | $26 | $314 |
| Other apparel and services | $15 | $181 |
Data source: U.S. Bureau of Labor Statistics (2021).
Average monthly expenses by household size
And so far, nosotros've looked at the boilerplate living expenses per consumer unit, which represents the average household. But many households won't fit into the boilerplate.
If you're a unmarried person, yous're probably interested in the average monthly expenses for i person. And those with larger families may want to see what the typical spending habits are like in similar households.
As it turns out, single-person households have it much harder financially than households with two or more people. In fact, single people spent $329 per yr more their after-tax income.
| Household size | Boilerplate monthly spending | Average annual spending | Average income later on taxes |
|---|---|---|---|
| One person | $3,241 | $38,895 | $38,566 |
| Two people | $5,271 | $63,254 | $78,108 |
| 3 people | $5,812 | $69,740 | $89,187 |
| Four people | $7,005 | $84,056 | $109,306 |
| Five people | $6,746 | $80,954 | $108,451 |
Information source: U.S. Agency of Labor Statistics (2021).
How exercise your average monthly expenses compare?
Information technology'due south interesting to see what the typical American spending habits expect like and compare them to your ain. Peradventure you find that you spend similar portions of your monthly income in each category, or your spending patterns could be completely different.
Neither on its ain is a practiced or a bad thing. Nosotros all accept different things we value and different areas where we're willing to spend more money. If you're happy with your spending habits and you feel financially secure, that'southward what's important.
If you're not able to salve equally much money as you like, then it'due south a good idea to reevaluate your typical spending and your budget. Whether information technology's dining out, entertainment, or something else, there could be an expanse where you're spending more than you realize and are able to cutting back.
Sources
- U.Due south. Bureau of Labor Statistics (2021). "2020 Consumer Expenditure Survey."
- U.South. Bureau of Labor Statistics (2021). "Consumer expenditures in 2020."
- U.S. Bureau of Labor Statistics (2021). "Table 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."
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Source: https://www.fool.com/the-ascent/research/average-monthly-expenses/
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