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. So, how does your household compare?
Housing
The average American spends roughly 33% of their income on shelter. This can include property rent, mortgage interest, property taxes, maintenance, repairs, and home insurance.
Transportation
Americans spend an average of 17% 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 11.4% of their income on personal insurance and pensions.
Healthcare and Health Insurance
The average American household spends an average of 8.2% 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 5% 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.
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Source:
BLS.gov, 2023. Bureau of Labor Statistics, 2023
