What are average monthly expenses by age?

Average monthly expenses: under 25 ($3,240), 25-34 ($5,260), 35-44 ($6,530), 45-54 ($6,840), 55-64 ($5,980), 65-74 ($4,780), 75+ ($3,660). Spending peaks in the 45-54 age range and declines in retirement, primarily due to lower housing and transportation costs.

How much should I be spending each month?

A common guideline is the 50/30/20 rule: 50% on needs (housing, food, utilities, transportation), 30% on wants, and 20% on savings and debt payoff. Actual amounts depend on income and location. The typical American household spends about 75-80% of income on expenses.

What age group spends the most money?

The 45-54 age group has the highest average annual expenditures at approximately $82,100. This reflects peak earning and spending years — often supporting teenagers/college students, maintaining larger homes, and at the height of career spending.

How do expenses change in retirement?

Most retirees spend 70-80% of what they spent while working. Housing costs often drop (mortgage paid off), transportation decreases, and work-related expenses disappear. However, healthcare costs typically rise significantly — spending up to 50% more on medical costs than pre-retirees.

Average Expenses by Age in the US (2026 Data)

Understanding what Americans spend at each life stage helps set a realistic baseline for your own budget. Data below is based on Bureau of Labor Statistics (BLS) Consumer Expenditure Survey.

Average Annual Expenses by Age Group

Age Group	Avg Annual Spending	Avg Monthly Spending
Under 25	$38,900	$3,240
25-34	$63,100	$5,260
35-44	$78,400	$6,530
45-54	$82,100	$6,840
55-64	$71,800	$5,980
65-74	$57,300	$4,780
75+	$43,900	$3,660

Spending by Category (All Ages)

Category	Annual Amount	% of Total
Housing	$24,300	33%
Transportation	$12,400	17%
Food	$9,700	13%
Personal insurance/pensions	$9,200	12%
Healthcare	$6,200	8%
Entertainment	$3,400	5%
Apparel	$1,900	3%
Education	$1,400	2%
Other	$6,500	7%

Housing Costs by Age Group

Age Group	Avg Annual Housing Cost	Own vs. Rent
Under 25	$12,800	60% rent
25-34	$20,600	52% rent
35-44	$26,100	68% own
45-54	$27,400	79% own
55-64	$24,200	83% own
65-74	$18,900	81% own
75+	$14,800	78% own

Healthcare Costs by Age Group

Age Group	Avg Annual Healthcare
Under 25	$2,100
25-34	$3,800
35-44	$5,200
45-54	$6,400
55-64	$8,100
65-74	$10,200
75+	$11,800

Food Spending by Age Group

Age Group	Avg Annual Food Cost	Dining Out %
Under 25	$6,700	46%
25-34	$9,200	48%
35-44	$11,800	42%
45-54	$12,100	40%
55-64	$10,200	38%
65-74	$8,400	37%
75+	$6,200	33%

How Your Expenses Compare to Income

Age Group	Avg Income	Avg Spending	Savings Rate
Under 25	$41,200	$38,900	5.6%
25-34	$72,400	$63,100	12.8%
35-44	$88,600	$78,400	11.5%
45-54	$95,200	$82,100	13.8%
55-64	$82,700	$71,800	13.2%
65-74	$60,400	$57,300	5.1%
75+	$45,600	$43,900	3.7%