How Much Should a Family of 4 Spend on Groceries 2018
American Households' Boilerplate Monthly Expenses: $5,111
Prototype source: Getty Images
The average monthly expenses for American households are $5,111, co-ordinate to the virtually recent Consumer Expenditure Survey from the U.S. Agency of Labor Statistics (BLS).
Where does all that money go? For the typical person, it covers quite a few different things from major costs like payments to their mortgage lender and groceries to smaller expenses like apparel.
By peeking into the national average budget for all these categories, we tin get a better idea of where people spend the most and how our ain spending habits compare.
Key findings
- The average household's monthly expenses are $5,111 ($61,334 per year).
- The average annual income after taxes is $74,949.
- Housing is the largest average cost at $i,784 per month, making upwardly 34.nine% of typical spending.
- Americans spend $610 on food per month, with almost ii-thirds existence spent on groceries and the residue on eating out.
- Transportation costs more than many realize ($819 per month), largely due to the intermittent nature of these expenses.
- Healthcare spending averages $431 per month.
- The average single person spends $329 more per year than their take-abode pay.
Boilerplate monthly expenses per household: $five,111
The average expenses per calendar month for 1 consumer unit in 2020 was $5,111. That means the boilerplate spending per year is $61,334.
Go along in mind that living cost varies past region -- some cities are very affordable, while others are extremely expensive. The figures presented below are national averages.
Consumer spending in the United states had been steadily increasing, only 2020 was a departure from that tendency, likely considering of the COVID-19 pandemic. Average expenses decreased by ii.vii% from 2019 to 2020.
You might be wondering what exactly counts every bit a consumer unit. The BLS defines a consumer unit equally any of the following:
- Families
- Single persons living lonely
- Unmarried persons sharing a household with others but are financially independent
- 2 or more people living together and sharing major expenses
For case, two parents and a child would be one consumer unit. Three roommates would be three consumer units. The average consumer unit is 2.5 people.
Average annual income per household: $74,949
The boilerplate American household's annual income after taxes is $74,949. Average pre-tax income is $84,352.
Based on the income and spending figures, Americans spend 82% of their income after taxes and accept a savings rate of xviii%. That'southward close to the recommended savings rate of at least 20%.
While the amount you save is most important, where you put that money too matters. The all-time option is a high-yield savings account to maximize the involvement you earn.
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Where Americans spend their money
Here's a total breakdown of the average spending by category:
| Item | Monthly cost | Annual cost | Percentage of spending |
|---|---|---|---|
| Housing | $one,784 | $21,409 | 34.9% |
| Transportation | $819 | $9,826 | sixteen.0% |
| Personal insurance and pensions | $604 | $7,246 | 11.viii% |
| Healthcare | $431 | $5,177 | 8.4% |
| Groceries | $412 | $iv,942 | 8.i% |
| Entertainment | $243 | $ii,912 | 4.7% |
| Restaurants and other meals abroad from home | $198 | $2,375 | three.9% |
| Cash contributions | $190 | $ii,283 | iii.seven% |
| Dress and services | $120 | $1,434 | 2.3% |
| Educational activity | $106 | $1,271 | 2.1% |
| Miscellaneous | $76 | $907 | 1.5% |
| Personal care | $54 | $646 | 1.1% |
| Alcoholic beverages | $twoscore | $478 | 0.eight% |
| Tobacco/smoking products | $26 | $315 | 0.5% |
| Reading | $10 | $114 | 0.two% |
| TOTAL SPENDING | $5,111 | $61,334 |
Data source: U.S. Bureau of Labor Statistics (2021).
A quick notation almost monthly spending
The BLS survey only calculates annual spending, and then we divided those numbers by 12 to go the average household expenses per calendar month. Considering nosotros rounded to the nearest dollar, at that place may exist small discrepancies when comparison the monthly and annual numbers.
It'due south also worth noting that not all of the typical expenses are monthly expenses. Some of these expenses are intermittent. For case, most people aren't spending $196 per calendar month on furniture and appliances. Simply over the form of the year, the average is $2,346.
Average monthly spending on housing: $1,784 (34.ix%)
Housing is the biggest living expense in the national average budget past a broad margin, and information technology increased by 3.5% in 2020.
Of the $1,784 per month that Americans spend on housing, $1,050 of it goes towards housing payments. This fluctuates quite a bit depending on a person'south living situation. Boilerplate housing costs tin be anywhere from nether $one,000 to over $three,000 depending on the expanse. Housing size and whether a person has roommates also have a big affect on how much they spend hither.
Here's a more detailed look at the different expenses of home buying and how much Americans spend on them:
| Housing expense | Boilerplate monthly spending | Average annual spending |
|---|---|---|
| Shelter | $1,050 | $12,604 |
| Utilities/fuels/public services | $347 | $4,158 |
| Furniture/appliances | $196 | $two,346 |
| Household operations | $122 | $ane,465 |
| Housekeeping supplies/laundry | $70 | $837 |
Data source: U.South. Bureau of Labor Statistics (2021).
Boilerplate monthly spending on transportation: $819 (16.0%)
Transportation is the second-largest monthly expenditure, but Americans take been spending less on it. National average transportation spending decreased by 8.v% from 2019 to 2020.
Information technology'south piece of cake to miss merely how much we spend on transportation, considering some of the bigger expenses are intermittent. Maintenance and repairs aren't necessary every month, merely they add up to $879 per yr. Near people don't buy new vehicles oftentimes, but when they practice, it's a major purchase. Depending on the payment schedule you choose, auto insurance could be a monthly expense or i that you pay twice a year.
| Transportation expense | Average monthly spending | Average annual spending |
|---|---|---|
| Vehicle purchases | $377 | $4,523 |
| Insurance | $131 | $i,575 |
| Gas and oil | $131 | $i,568 |
| Maintenance/repairs | $73 | $879 |
| Rental/leases/fees | $63 | $758 |
| Public transportation | $22 | $263 |
| Vehicle finance charges | $22 | $258 |
Information source: U.S. Bureau of Labor Statistics (2021).
Average monthly food spending: $610 (12.0%)
Food spending includes groceries and food away from home, which is any nutrient that you lot pay someone else to prepare for you. It decreased by 10.4% from 2019 to 2020.
In that location'due south one articulate reason for that drop in nutrient spending, and information technology probably won't come as a surprise considering the circumstances in 2020: people seriously cut back on dining.
The average American spent over $1,000 less on food away from home in 2020 ($2,375) than in 2019 ($3,526). Overall, spending dropped by 32.half-dozen% in this category. Grocery spending, on the other hand, increased by 6.4%. If you've seen your ain supermarket spending increase, a grocery credit bill of fare could aid you relieve on that.
| Nutrient expense | Average monthly spending | Average annual spending |
|---|---|---|
| Groceries | $412 | $4,942 |
| Food away from abode | $198 | $2,375 |
Data source: U.S. Agency of Labor Statistics (2021).
Average monthly personal insurance and pension spending: $604 (11.viii%)
Personal insurance and pensions accounted for $604 in monthly spending. That was a slight (1.1%) increase from 2019.
To clarify, this category includes life insurance, personal liability insurance, accident insurance, and disability insurance. Information technology doesn't include homeowners insurance or renters insurance, which are function of housing costs, or auto insurance, which is part of transportation.
But 6.vii% of spending in this category goes towards personal insurance. The remaining 93.3% goes to pensions and Social Security. That category includes contributions to retirement accounts and the Social Security benefits withheld from your paycheck.
| Personal insurance and pension expense | Boilerplate monthly spending | Average annual spending |
|---|---|---|
| Personal insurance | $41 | $486 |
| Pensions/Social Security | $563 | $six,760 |
Data source: U.South. Bureau of Labor Statistics (2021).
Average monthly healthcare spending: $431 (8.4%)
Despite the COVID-nineteen pandemic, healthcare spending didn't change much in 2020. It decreased by 0.three% from the previous year.
Just over seventy% of that spending went towards health insurance premiums, which cost an average of $306. That probably sounds depression for health insurance. Information technology'southward partly because many people pay less due to revenue enhancement credits, employer-paid premiums, Medicare, and Medicaid. In addition, eight.vi% of Americans don't have health insurance, according to the U.S. Census Bureau.
| Healthcare expense | Average monthly spending | Boilerplate almanac spending |
|---|---|---|
| Health insurance | $306 | $3,667 |
| Medical services | $72 | $864 |
| Drugs | $40 | $476 |
| Medical supplies | $14 | $170 |
Data source: U.S. Bureau of Labor Statistics (2021).
Average monthly spending on entertainment: $243 (iv.7%)
Americans spend four.vii% of their monthly budgets on entertainment. Spending in this category decreased past five.8% in 2020.
The BLS made some interesting decisions in what was and wasn't considered entertainment. As entertaining every bit pets can exist, pet owners would probably argue that they deserve their own category. Avid readers may be surprised to learn that reading doesn't fall under entertainment (it has its own category instead).
| Entertainment expense | Boilerplate monthly spending | Average almanac spending |
|---|---|---|
| A/Five equipment and services | $87 | $1,049 |
| Pets | $58 | $690 |
| Other amusement supplies, equipment, and services | $48 | $579 |
| Fees and admissions | $35 | $425 |
| Toys/hobbies | $14 | $170 |
Information source: U.S. Bureau of Labor Statistics (2021).
Average monthly spending on apparel and services: $120 (2.iii%)
It'due south rubber to say that people weren't besides concerned virtually dressing up during the early on days of the pandemic. Apparel spending plummeted in 2020, dropping by 23.8% from the year before.
| Apparel and services expense | Average monthly spending | Boilerplate annual spending |
|---|---|---|
| Men and boys | $27 | $326 |
| Women and girls | $45 | $545 |
| Children under two | $vi | $68 |
| Footwear | $26 | $314 |
| Other wearing apparel and services | $15 | $181 |
Data source: U.Due south. Bureau of Labor Statistics (2021).
Average monthly expenses by household size
And so far, we've looked at the average living expenses per consumer unit, which represents the boilerplate household. But many households won't fit into the average.
If you're a unmarried person, you're probably interested in the average monthly expenses for i person. And those with larger families may want to see what the typical spending habits are like in similar households.
As it turns out, single-person households have information technology much harder financially than households with two or more people. In fact, single people spent $329 per year more than their after-tax income.
| Household size | Average monthly spending | Boilerplate almanac spending | Boilerplate income after taxes |
|---|---|---|---|
| One person | $iii,241 | $38,895 | $38,566 |
| Two people | $5,271 | $63,254 | $78,108 |
| Three people | $5,812 | $69,740 | $89,187 |
| Four people | $7,005 | $84,056 | $109,306 |
| Five people | $6,746 | $80,954 | $108,451 |
Information source: U.Southward. Bureau of Labor Statistics (2021).
How practise your boilerplate monthly expenses compare?
Information technology'southward interesting to encounter what the typical American spending habits look like and compare them to your own. Maybe you find that you spend like portions of your monthly income in each category, or your spending patterns could exist completely different.
Neither on its own is a good or a bad thing. We all have different things we value and dissimilar areas where we're willing to spend more coin. If you're happy with your spending habits and you experience financially secure, that's what's important.
If y'all're non able to save as much coin as yous similar, then it's a skillful thought to reevaluate your typical spending and your budget. Whether it's dining out, entertainment, or something else, in that location could be an surface area where you're spending more than you realize and are able to cut back.
Sources
- U.S. Bureau of Labor Statistics (2021). "2020 Consumer Expenditure Survey."
- U.S. Agency of Labor Statistics (2021). "Consumer expenditures in 2020."
- U.S. Bureau of Labor Statistics (2021). "Table 1400. Size of consumer unit: Annual expenditure ways, shares, standard errors, and coefficients of variation, Consumer
- Expenditure Surveys, 2020."
- Usa Demography Bureau (2021). "Wellness Insurance Coverage in the Usa: 2020."
Source: https://www.fool.com/the-ascent/research/average-monthly-expenses/
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