The average household spends more than $5,000 a month. How is compared?

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The average American household spends $5,000 each month on bills and expenses. How does your monthly expense compare?

Key points

  • The average American household spends more than $5,000 each month.
  • Find out which monthly expenses cost the most.

Everyday expenses add up quickly for both individuals and families. Did you know that the average American household spends more than $5,000 each month? Find out what Americans are spending their hard-earned money on and see how your monthly spending compares.

Life can get expensive, and sometimes it’s hard to cut the necessary costs. If you feel like most of your income is spent on essential bills and expenses, you’re probably not imagining it, and you’re not alone.

Inflation is one factor that could lead you to spend more on products and services. the US Department of Labor recently noted that the Consumer Price Index, which measures the change in the prices of consumer goods, rose 7.5% from last year.

This is the largest increase in 12 months since February 1982.

The average household spends $5,111 each month

So how much do Americans spend each month? We recently examined the average monthly expenses of American households.

According to the US Bureau of Labor Statistics, the average monthly expenses of a US household are $5,111. That works out to $61,334 per year.

This total expense includes costs such as housing, transit, groceries, health care, meals and takeout, personal care, and education.

Housing and transit costs are the largest expenses

For many individuals and families, essential expenses like housing and transportation take up a large portion of their monthly budget.

For the purposes of the survey above, housing costs include housing, utilities, furniture and appliances, household operating costs, and cleaning supplies.

Transportation costs include the purchase of vehicles, insurance, gasoline and oil, maintenance and repairs, rental and lease fees, vehicle finance charges, and public transportation costs.

Here’s a breakdown of some stats:

  • The average household spends $1,784 per month on housing costs.
  • The average household spends $819 per month on transit costs.
  • Housing costs represent almost 35% of the average monthly budget of a household.
  • Transit costs represent 16% of the average monthly household budget.
  • These combined costs represent 50.9% of the average monthly household budget.

The average American household spends $2,603 ​​per month on these expenses, just over half of their total monthly spending. That’s a lot of money!

It’s worth noting that housing and transit costs can vary greatly depending on what part of the country you live in and your personal and financial situation.

How does your monthly expense compare?

How does your monthly expense compare to that of the average American household? There may be ways to cut back on some of your spending. Here are some tips that can help you spend less money each month:

  • Set and follow a budget. Budgeting is a great way to manage your money. As you learn to set and follow spending limits, you’ll be able to free up some of your income to make room for other expenses. If you’re a newbie to budgeting, check out this budgeting guide for the first time.
  • Track your expenses. Many people have no idea how much they spend each month. If you don’t track your spending, you may be spending too much money. You can use budgeting apps to see where your money is going, and as you learn more, you can adjust your spending habits to reduce unnecessary purchases.
  • Use coupons when you go shopping. You may be able to spend less the next time you shop in the store or online. By using promo codes and coupon codes found in coupon apps, you can reduce the amount you pay at checkout.
  • Price shop. If your monthly expenses are getting out of hand, now is a good time to shop around. Compare prices from auto, renter and home insurance, and utility providers. You may be able to cut some of your expenses by choosing a different company.

You may be able to make small habit changes that help you spend less money each month. For more money-saving tips, check out our personal finance resources.

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