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.

Bureau of Labor Statistics, 2021

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, 2021
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, 2021
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, 2021
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, 2021
12%

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, 2021
8%

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, 2021
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, 2021
3%

of the average American budget

$1,888

Apparel

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

Bureau of Labor Statistics, 2021
3%

of the average American budget

$1,866

Share |

Have A Question About This Topic?

Thank you! Oops!

Related Content

Once Upon a Goal

Once Upon a Goal

Do you know how to set up your financial goals for success? This knight does.

Data Thieves from Outer Space

Data Thieves from Outer Space

Learn about the dangers of internet fraud with this highly educational and fun “pulp” comic.

Your Cash Flow Statement

Your Cash Flow Statement

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