Money

The Average American Budget

The Average American Budget

According to the Bureau of Labor Statistics, the average American household earns an average of $78,635 a year before taxes and spends over 77% of that on “basic needs.” But studies have shown that regardless of income, budget percentages remain the same across categories. So, how does your household compare?

Bureau of Labor Statistics, 2019

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, 2019
33%

of the average American budget

$20,091

Transportation

Americans spend an average of 16% of their total income on transportation, including the purchase and upkeep of their vehicle.

Bureau of Labor Statistics, 2019
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, 2019
13%

of the average American budget

$7,203

Insurance

After the “basic needs” are covered, Americans spend an average of 12% of their income on personal insurance and pensions.

Bureau of Labor Statistics, 2019
12%

of the average American budget

$6,831

Healthcare and Health Insurance

The average American household spends an average of 8% of their total income on health care and health insurance.

Bureau of Labor Statistics, 2019
8%

of the average American budget

$4,968

Entertainment

At the end of the day, Americans still manage to spend an average of 4% of their income on entertainment.

Bureau of Labor Statistics, 2019
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, 2019
3%

of the average American budget

$1,888

Apparel

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

Bureau of Labor Statistics, 2019
3%

of the average American budget

$1,866

Share |

Have A Question About This Topic?

Thank you! Oops!

Related Content

What Our Kids Can Teach us About Saving Money

What Our Kids Can Teach us About Saving Money

Would you guess that Millennials are effectively saving for retirement? Well, they are.

Mortgages in Retirement

Mortgages in Retirement

Explore the benefits and drawbacks to paying off your mortgage prior to retirement with this article.

Your Cash Flow Statement

Your Cash Flow Statement

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