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?

  • 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.
  • Transportation
    Americans spend an average of 16% of their total income on transportation, including the purchase and upkeep of their vehicle.
  • Food
    Whether cooking at home or eating out, Americans spend an average of 13% of their income on food.
  • Insurance
    After the “basic needs” are covered, Americans spend an average of 12% of their income on personal insurance and pensions.
  • Healthcare and Health Insurance
    The average American household spends an average of 8% of their total income on health care and health insurance.
  • Entertainment
    At the end of the day, Americans still manage to spend an average of 4% of their income on entertainment.
  • Cash Contributions
    Americans value charitable giving by spending an average of 3% of their income on cash contributions.
  • Apparel
    Finally, Americans spend 3% of their total income on apparel.
