Understanding where your money goes is the first step to controlling it. Here’s how the average American household budget breaks down, and how it varies by state.
Quick answer: Average US household: $6,440/month ($77,280/year). Housing: $2,025 (31%), transportation: $1,025 (16%), food: $810 (13%). Hawaii highest, Mississippi lowest.
Average Monthly Household Expenses Breakdown
| Category | Monthly Average | Annual Average | % of Spending |
|---|---|---|---|
| Housing (mortgage/rent, insurance, maintenance) | $2,025 | $24,300 | 31.4% |
| Transportation (car payment, insurance, gas, maintenance) | $1,025 | $12,300 | 15.9% |
| Food (groceries + dining out) | $810 | $9,720 | 12.6% |
| Healthcare (insurance, medical, prescriptions) | $520 | $6,240 | 8.1% |
| Personal insurance & pensions (Social Security, retirement) | $680 | $8,160 | 10.6% |
| Entertainment/recreation | $290 | $3,480 | 4.5% |
| Utilities (electric, gas, water, internet, phone) | $370 | $4,440 | 5.7% |
| Clothing and services | $160 | $1,920 | 2.5% |
| Education | $115 | $1,380 | 1.8% |
| Charitable contributions | $185 | $2,220 | 2.9% |
| Personal care | $75 | $900 | 1.2% |
| Miscellaneous | $185 | $2,220 | 2.9% |
| Total | $6,440 | $77,280 | 100% |
Food Spending Breakdown
| Category | Monthly Average | Annual | Notes |
|---|---|---|---|
| Groceries | $520 | $6,240 | 64% of food budget |
| Dining out (restaurants, takeout) | $290 | $3,480 | 36% of food budget |
| Total food | $810 | $9,720 | 12.6% of all spending |
Groceries by Household Size
| Household Size | Monthly Grocery Cost | USDA “Thrifty” Plan | USDA “Moderate” Plan |
|---|---|---|---|
| 1 person | $340 | $230 | $340 |
| 2 people | $580 | $420 | $600 |
| 3 people | $770 | $560 | $790 |
| 4 people | $920 | $680 | $960 |
| 5 people | $1,060 | $780 | $1,100 |
See also:2024 US Average Annual Income By State·Average Cost of Living in the US in 2026 (By State)·Average Rent by State in 2026
Average Monthly Expenses by State
| State | Avg. Monthly Expenses | vs. National Avg. | Key Cost Driver |
|---|---|---|---|
| Hawaii | $8,540 | +33% | Housing, groceries |
| California | $8,100 | +26% | Housing |
| Massachusetts | $7,820 | +21% | Housing, healthcare |
| New York | $7,680 | +19% | Housing, taxes |
| Oregon | $7,280 | +13% | Housing |
| Washington | $7,200 | +12% | Housing |
| Connecticut | $7,100 | +10% | Housing, taxes |
| New Jersey | $7,040 | +9% | Housing, taxes |
| Colorado | $6,980 | +8% | Housing |
| Maryland | $6,920 | +7% | Housing |
| Alaska | $6,880 | +7% | Groceries, energy |
| Virginia | $6,780 | +5% | Housing |
| New Hampshire | $6,720 | +4% | Housing |
| Rhode Island | $6,680 | +4% | Housing |
| Vermont | $6,640 | +3% | Energy, housing |
| Delaware | $6,560 | +2% | Mixed |
| National Average | $6,440 | — | — |
| Minnesota | $6,400 | -1% | Energy |
| Illinois | $6,360 | -1% | Taxes |
| Pennsylvania | $6,280 | -2% | Mixed |
| Florida | $6,200 | -4% | Housing (rising) |
| Nevada | $6,160 | -4% | Mixed |
| Maine | $6,120 | -5% | Energy |
| Arizona | $6,040 | -6% | Mixed |
| Montana | $5,960 | -7% | Energy |
| Utah | $5,920 | -8% | Mixed |
| Wisconsin | $5,880 | -9% | Energy |
| North Carolina | $5,840 | -9% | Mixed |
| Michigan | $5,800 | -10% | Mixed |
| South Carolina | $5,760 | -11% | Mixed |
| Idaho | $5,720 | -11% | Mixed |
| Nebraska | $5,680 | -12% | Mixed |
| New Mexico | $5,640 | -12% | Mixed |
| Ohio | $5,600 | -13% | Mixed |
| Georgia | $5,560 | -14% | Mixed |
| Texas | $5,520 | -14% | Low taxes offset housing |
| Indiana | $5,480 | -15% | Low housing |
| South Dakota | $5,440 | -16% | Low housing |
| Iowa | $5,400 | -16% | Low housing |
| North Dakota | $5,360 | -17% | Low housing |
| Tennessee | $5,320 | -17% | No income tax |
| Missouri | $5,280 | -18% | Low housing |
| Wyoming | $5,240 | -19% | No income tax |
| Kentucky | $5,200 | -19% | Low housing |
| Kansas | $5,160 | -20% | Low housing |
| Louisiana | $5,120 | -20% | Low housing |
| Alabama | $5,080 | -21% | Low housing |
| Oklahoma | $5,040 | -22% | Low housing |
| Arkansas | $5,000 | -22% | Lowest CoL |
| West Virginia | $4,960 | -23% | Lowest CoL |
| Mississippi | $4,880 | -24% | Lowest CoL |
Expenses by Age Group
| Age Group | Monthly Expenses | Largest Category | Notable Differences |
|---|---|---|---|
| Under 25 | $4,280 | Housing (35%) | Lower housing, less healthcare |
| 25-34 | $5,880 | Housing (33%) | Childcare costs rising |
| 35-44 | $7,280 | Housing (30%) | Peak spending years, childcare |
| 45-54 | $7,540 | Housing (29%) | Highest spending, college costs |
| 55-64 | $6,640 | Housing (31%) | Healthcare rising |
| 65-74 | $5,520 | Housing (33%) | Healthcare is 15% of budget |
| 75+ | $4,360 | Housing (37%) | Healthcare is 18% of budget |
Expenses by Income Level
| Income | Monthly Expenses | Housing % | Savings Rate |
|---|---|---|---|
| Under $30K | $3,280 | 40% | -5% (spending more than earning) |
| $30K-$50K | $4,160 | 35% | 3% |
| $50K-$70K | $5,240 | 32% | 8% |
| $70K-$100K | $6,440 | 30% | 12% |
| $100K-$150K | $7,680 | 28% | 18% |
| $150K-$200K | $9,120 | 26% | 22% |
| $200K+ | $12,400 | 24% | 30%+ |
How to Reduce Monthly Expenses
| Category | Strategy | Potential Monthly Savings |
|---|---|---|
| Housing | Move to cheaper area, get a roommate, or downsize | $300-$1,000+ |
| Transportation | Buy used, drive less, single car household | $200-$600 |
| Food | Meal plan, cook at home, reduce dining out | $200-$400 |
| Subscriptions | Audit all recurring charges | $50-$150 |
| Insurance | Shop rates annually, bundle policies | $50-$200 |
| Utilities | Energy efficiency, negotiate internet | $30-$100 |
| Phone | Switch to MVNO or low-cost carrier | $30-$80 |
| Entertainment | Free alternatives, library, parks | $50-$200 |