The average household spends over $5,000 per month. How do you compare?
The average American household spends $5,000 a month on bills and expenses. How do your monthly expenses compare?
- The average American household spends over $5,000 per month.
- Find out which monthly expenses cost the most.
Daily expenses add up quickly for individuals and families. Did you know that the average American household spends over $5,000 per month? Find out what Americans are spending their hard-earned money on and compare your monthly expenses.
Life can get expensive and it is sometimes difficult to cut down on necessary expenses. If it feels like most of your income is spent on bills and essential expenses, you’re probably not imagining it — and you’re not alone.
Inflation is a factor that could cause you to spend more on products and services. The US Department of Labor recently noted that the Consumer Price Index, which measures the change in prices of consumer goods, rose 7.5% from a year ago.
This is the largest 12-month increase since February 1982.
The average household spends $5,111 per month
So how much do Americans spend each month? We recently looked at the average monthly spending of US households.
According to the US Bureau of Labor Statistics, the average US household’s monthly expenses total $5,111. This equates to $61,334 per year.
These total expenses include costs such as housing, public transit, groceries, health care, meals and takeout, personal care, and education.
Accommodation and transport costs are the most important expenses
For many individuals and families, essential expenses like housing and transportation take up a large portion of their monthly budget.
For the purposes of the survey above, housing costs include housing, utilities, furniture and appliances, household operating costs, and housekeeping supplies.
Transportation costs include vehicle purchases, insurance, gas and oil, maintenance and repairs, rental and leasing costs, vehicle finance costs and public transport costs .
Here is a breakdown of some stats:
- The average household spends $1,784 per month on housing costs.
- The average household spends $819 per month on public transportation costs.
- Housing costs account for almost 35% of the average monthly household budget.
- Transportation costs represent 16% of the average monthly household budget.
- These combined costs represent 50.9% of the average monthly household budget.
The average US household spends $2,603 per month on these expenses, just over half of their total monthly expenses. That’s a lot of money!
It should be noted that housing and public transport costs can vary greatly depending on the part of the country you live in and your personal and financial situation.
How do your monthly expenses compare?
How do your monthly expenses compare to those of an average US household? There may be ways for you to reduce some of your expenses. Here are some tips that can help you spend less money each month:
- Establish and follow a budget. Budgeting is a great way to manage your money. As you learn to set and stick to spending limits, you may be able to free up some of your income to make room for other expenses. If you’re new to budgeting, check out this budgeting guide for the first time.
- Track your expenses. Many people have no idea how much they spend each month. If you don’t track your spending, you may be spending too much money. You can use budgeting apps to see where your money is going, and as you learn more, you can adjust your spending habits to reduce unnecessary purchases.
- Use coupons when shopping. You may be able to spend less on future in-store or online purchases. By using promo codes and discount codes found in coupon apps, you can reduce the amount you pay at checkout.
- Price shop. If your monthly expenses are spiraling out of control, now is a good time to price shop. Compare prices from car, rental and home insurance, and utility providers. You may be able to reduce some of your expenses by going to another company.
You may be able to make small changes in habits that will help you spend less money each month. For more money-saving tips, check out our personal finance resources.
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