The average American household spent $78,535 in 2024 — about $6,545 a month — according to the Bureau of Labor Statistics Consumer Expenditure Survey, the latest annual data. Housing took a third of that (33.4%, about $2,189 a month), followed by transportation (17.0%) and food (12.9%). The average household had 1.9 vehicles and $104,207 of income before taxes.
Full Annual Spending Breakdown (BLS, 2024)
| Category | Annual Spending | % of Total | Monthly |
|---|---|---|---|
| Housing | $26,266 | 33.4% | $2,189 |
| — Shelter (owned and rented dwellings, other lodging) | $16,317 | 20.8% | $1,360 |
| — Utilities, fuels, public services | $4,736 | 6.0% | $395 |
| — Household operations, supplies, and furnishings | $5,213 | 6.6% | $434 |
| Transportation | $13,318 | 17.0% | $1,110 |
| — Vehicle purchases (net outlay) | $5,337 | 6.8% | $445 |
| — Other vehicle expenses (insurance, maintenance, finance charges) | $4,206 | 5.4% | $350 |
| — Gasoline and motor oil (remainder) | $2,644 | 3.4% | $220 |
| — Public and other transportation | $1,131 | 1.4% | $94 |
| Food | $10,169 | 12.9% | $847 |
| — Food at home (groceries) | $6,224 | 7.9% | $519 |
| — Food away from home | $3,945 | 5.0% | $329 |
| Personal insurance and pensions | $9,797 | 12.5% | $816 |
| — Life and other personal insurance | $575 | 0.7% | $48 |
| — Retirement, pensions, and Social Security | $9,222 | 11.7% | $768 |
| Healthcare | $6,197 | 7.9% | $516 |
| — Health insurance | $4,055 | 5.2% | $338 |
| — Medical services | $1,252 | 1.6% | $104 |
| — Drugs and medical supplies | $891 | 1.1% | $74 |
| Entertainment | $3,609 | 4.6% | $301 |
| Cash contributions | $2,292 | 2.9% | $191 |
| Apparel and services | $2,001 | 2.5% | $167 |
| Education | $1,569 | 2.0% | $131 |
| Personal care | $978 | 1.2% | $82 |
| Alcohol, tobacco, reading, miscellaneous | $2,338 | 3.0% | $195 |
| Total | $78,535 | 100% | $6,545 |
Source: Bureau of Labor Statistics, Consumer Expenditure Survey 2024, average per household (“consumer unit”). Gasoline is shown as transportation minus its other three published components. Totals may differ by $1 because of rounding.
These are averages across all households, including retirees, students, and large families, so few households look exactly like this.
Spending by Household Size
| Household Size | Annual Spending | Monthly | Housing | Food | Transportation | Average Income Before Taxes |
|---|---|---|---|---|---|---|
| One person | $48,794 | $4,066 | $19,052 | $5,644 | $6,953 | $50,990 |
| Two people | $80,830 | $6,736 | $26,566 | $10,158 | $14,012 | $108,888 |
| Three people | $92,205 | $7,684 | $29,437 | $12,205 | $15,692 | $131,798 |
| Four people | $109,002 | $9,084 | $34,389 | $14,543 | $19,527 | $161,716 |
| Five or more | $103,472 | $8,623 | $32,471 | $15,605 | $19,188 | $138,279 |
Source: Bureau of Labor Statistics, Consumer Expenditure Survey 2024, average per household (“consumer unit”) by number of people.
Spending rises with each additional person up to four, then flattens: households of five or more had lower average incomes than four-person households in 2024 and spent slightly less. Housing costs rise more slowly than household size, so larger households spend less per person on housing.
How Spending Has Changed Since 2019
| Year | Average Annual Spending | Change | Housing | Transportation | Food | Healthcare | Average Income Before Taxes |
|---|---|---|---|---|---|---|---|
| 2019 | $63,036 | — | $20,679 | $10,742 | $8,169 | $5,193 | $82,852 |
| 2020 | $61,332 | -2.7% | $21,417 | $9,826 | $7,310 | $5,177 | $84,352 |
| 2021 | $66,928 | +9.1% | $22,624 | $10,961 | $8,289 | $5,452 | $87,432 |
| 2022 | $72,973 | +9.0% | $24,298 | $12,295 | $9,343 | $5,856 | $94,003 |
| 2023 | $77,280 | +5.9% | $25,436 | $13,174 | $9,985 | $6,159 | $101,805 |
| 2024 | $78,535 | +1.6% | $26,266 | $13,318 | $10,169 | $6,197 | $104,207 |
Source: Bureau of Labor Statistics, Consumer Expenditure Survey, average per household (“consumer unit”), in current dollars (not adjusted for inflation).
Average spending rose 24.6% from 2019 to 2024 in current dollars, while average income before taxes rose 25.8%. Spending fell in 2020, when pandemic restrictions cut travel, dining out, and vehicle use, then rose sharply in 2021 and 2022 as prices climbed.
How Spending Changes by Income Level
The BLS splits households into five equal groups by income before taxes. Each group’s spending as a share of its own total:
| Category | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Highest 20% | All households |
|---|---|---|---|---|---|---|
| Average income before taxes (per year) | $16,658 | $42,925 | $74,474 | $121,548 | $264,510 | $104,207 |
| Housing (total) | 41.6% | 38.3% | 36.0% | 32.6% | 29.3% | 33.4% |
| — Shelter (rent, mortgage interest, property tax) | 26.2% | 23.8% | 22.8% | 19.8% | 18.2% | 20.8% |
| — Utilities, fuels, public services | 8.4% | 8.1% | 6.9% | 6.0% | 4.4% | 6.0% |
| Transportation | 14.6% | 16.8% | 17.4% | 17.7% | 16.9% | 17.0% |
| Food (total) | 15.7% | 14.8% | 13.6% | 13.2% | 11.3% | 12.9% |
| — Groceries (food at home) | 11.0% | 9.9% | 8.7% | 8.0% | 6.2% | 7.9% |
| — Dining out (food away from home) | 4.7% | 4.9% | 4.9% | 5.2% | 5.1% | 5.0% |
| Personal insurance and pensions | 2.0% | 5.4% | 9.3% | 13.3% | 18.1% | 12.5% |
| Healthcare | 9.8% | 9.6% | 8.5% | 8.1% | 6.5% | 7.9% |
| Entertainment | 3.8% | 4.3% | 4.1% | 4.6% | 5.1% | 4.6% |
| Apparel and services | 3.2% | 2.7% | 2.5% | 2.3% | 2.6% | 2.5% |
| Cash contributions | 2.2% | 2.8% | 2.9% | 2.5% | 3.3% | 2.9% |
| Education | 2.4% | 0.8% | 1.1% | 1.5% | 3.0% | 2.0% |
| Total spending (per year) | $35,046 | $50,054 | $66,900 | $89,972 | $150,342 | $78,535 |
Source: Bureau of Labor Statistics, Consumer Expenditure Survey 2024, mean values per household (“consumer unit”) by quintile of income before taxes. Shares are of each group’s total spending, not of income. Categories shown do not add to the total; smaller BLS categories (personal care, alcohol, tobacco, reading, miscellaneous) are omitted.
- Housing’s share falls as income rises, from 42% of spending for the lowest fifth to 29% for the highest.
- Personal insurance and pensions (mostly Social Security taxes and retirement contributions) rise from 2% to 18% of spending, which is where much of higher earners’ saving shows up.
- The lowest fifth spends about twice its reported income ($35,046 of spending against $16,658 of income). This group includes many retirees and students living on savings, loans, or family support.
For budgets built on these figures, see the average monthly budget by income.
Where the Biggest Savings Usually Are
1. Transportation. At $13,318 a year, it’s the second-largest category. Vehicle purchases and other vehicle costs (insurance, maintenance, and loan interest) make up most of it; keeping a reliable car longer, buying used, or dropping a second vehicle usually saves more than any grocery tactic. See is my car payment too high?
2. Dining out. Food away from home was $3,945 a year ($329 a month), 39% of all food spending. Cutting it in half saves about $1,970 a year.
3. Housing. The largest lever but the slowest to change: a roommate, a smaller place, or refinancing when rates fall. Cutting housing costs by $400 a month is $24,000 over five years before any investment growth. See how much to spend on rent.
How Your Spending Compares With the 50/30/20 Rule
The 50/30/20 rule suggests 50% of take-home pay for needs, 30% for wants, and 20% for savings and extra debt payments. The BLS doesn’t sort spending into needs and wants, but housing, transportation, food, and healthcare alone came to 71% of average spending in 2024. Since part of transportation and food is discretionary, most households’ needs still run above the 50% guideline, which is why housing and vehicle decisions matter more than small cuts.
For a complete framework on building a budget, see how to create a budget and the budget worksheet.
Part of the budgeting guide.
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