By: Laura Walton AFC®
Well, let’s see. The U.S. Bureau of Labor Statistics tracks consumer spending each year. We have numbers for 2017 – see how you stack up.
On average, U.S. households spent an average of $60,060. Using the chart below, we offer the following percentages:
- Housing: 33% Includes mortgage payments or rent, property taxes, maintenance, utilities, household services and products, furnishings and appliances. On a monthly basis, this implies that the average household spends $1,657 on all of these expenses combined.
- Transportation: 16% In addition to the cost of vehicles, this includes gasoline, finance charges, maintenance, insurance and public transportation expenses.
- Food: 13% which can be further broken down into $4,363 of food at home and $3,365 on food away from home.
- Personal insurance and pensions: 11% The largest expense in this category is Social Security payroll tax, but life insurance premiums and pension contributions are also included.
- Health care: 8% Includes the cost of health insurance, medical services, prescription drugs as well as other medical supplies.
- Entertainment: 5% Includes in-home entertainment costs, as well as outside-the-home entertainment ventures. Certain other expenses, such as your pets, are included here.
- Apparel and services: 3%
- Cash contributions (charity, for example): 3%
- Miscellaneous: 3%
- Education: 2%
- Personal care products and services: 1%
- The difference between gross and net income after taxes includes the average household’s $8,367 federal income tax bill, as well as state and local income taxes.
- Spending on food comes out to $364/month or, if including eating out, $644/month.
- Entertainment spending increased by 10% while charitable donations dropped 10% compared to the prior year.
Next week I’ll dial down on some of those pesky discretionary spending categories like vacations, gifts, pets and clothing.