The average American household spends $72,967 per year — but few people have a clear picture of where that money actually goes. The BLS Consumer Expenditure Survey breaks down national spending by category. Here is the full data, including how spending shifts across income levels.
National Average Household Spending (2023)
Bureau of Labor Statistics Consumer Expenditure Survey, most recent annual data:
| Category | Annual Spending | % of Total | Monthly Amount |
|---|---|---|---|
| Housing | $24,298 | 33.3% | $2,025 |
| — Shelter (rent/mortgage) | $16,398 | 22.5% | $1,367 |
| — Utilities, fuels, public services | $4,631 | 6.3% | $386 |
| — Household operations & furnishings | $3,269 | 4.5% | $272 |
| Transportation | $11,987 | 16.4% | $999 |
| — Vehicle purchases | $4,108 | 5.6% | $342 |
| — Gasoline and other fuels | $2,841 | 3.9% | $237 |
| — Other vehicle expenses | $4,237 | 5.8% | $353 |
| Food | $9,985 | 13.7% | $832 |
| — Food at home | $6,113 | 8.4% | $509 |
| — Food away from home | $3,872 | 5.3% | $323 |
| Personal insurance & pensions | $8,240 | 11.3% | $687 |
| — Life and other insurance | $862 | 1.2% | $72 |
| — Pensions & Social Security | $7,378 | 10.1% | $615 |
| Healthcare | $6,188 | 8.5% | $516 |
| — Health insurance | $4,038 | 5.5% | $337 |
| — Medical services | $1,388 | 1.9% | $116 |
| — Drugs & medical supplies | $762 | 1.0% | $64 |
| Entertainment | $3,872 | 5.3% | $323 |
| Education | $1,737 | 2.4% | $145 |
| Apparel and services | $1,937 | 2.7% | $161 |
| All other | $4,723 | 6.5% | $394 |
| TOTAL | $72,967 | 100% | $6,081 |
BLS 2023 Consumer Expenditure Survey. “Average household” has approximately 2.5 persons and 1.9 income earners.
How Spending Changes by Income Level
The composition of spending shifts dramatically with income. Higher earners spend more in absolute dollars but more on discretionary categories:
| Category | Bottom 20% (<$30K) | Middle 20% ($52K–$82K) | Top 20% (>$130K) |
|---|---|---|---|
| Housing | 40.2% | 33.1% | 28.4% |
| Transportation | 17.8% | 17.2% | 14.1% |
| Food | 15.4% | 13.2% | 11.9% |
| Healthcare | 9.1% | 8.8% | 6.4% |
| Entertainment | 3.8% | 5.4% | 7.2% |
| Pensions/savings | 3.2% | 9.4% | 16.8% |
| Education | 1.1% | 2.1% | 4.2% |
| Apparel | 3.1% | 2.6% | 2.8% |
| Other | 6.3% | 8.2% | 8.2% |
The bottom quintile spends 73% of income on just housing, transportation, and food — leaving almost nothing for savings or discretionary spending. The top quintile spends 54% on those three categories, directing 17% to savings and retirement.
Housing: The Budget-Defining Category
At 33% of average spending, housing is the single largest budget driver. Some benchmarks:
- The 30% rule (spend no more than 30% of gross income on housing) is widely cited but increasingly hard to meet for renters in major metros
- In San Francisco, Miami, and New York, median rents now represent 40–60% of median income
- Homeowners with mortgages locked in before 2022 often spend a much lower percentage on housing than equivalent renters today
- For a household earning $75,000, the 30% rule means maximum housing costs of $1,875/month — below market rate in most major cities
Transportation: The Underestimated Budget Line
Transportation costs $11,987 per year on average — often second to housing but frequently underestimated because the costs are fragmented across car payments, insurance, gas, and maintenance:
- Vehicle purchase: $4,108/year average — includes loan payments and cash purchases
- Gasoline: $2,841/year — approximately $237/month at an average of 35 miles/gallon
- Auto insurance: ~$2,000/year average in 2026 (up significantly from 2022)
- Maintenance, registration, parking: ~$1,500/year
Americans with two vehicles easily exceed $18,000/year in transportation costs. Moving from two cars to one, or from car ownership to transit where feasible, can free $6,000–$12,000 annually.
Food: Dining Out vs. Groceries
The split between food at home ($6,113) and away from home ($3,872) is notable. Dining out represents 39% of total food spending. At a household income of $75,000, cutting dining out in half saves approximately $1,900/year with no reduction in caloric intake.
Food cost by household composition, estimated:
- Single person: ~$4,400/year
- Couple: ~$7,500/year
- Family of 4: ~$13,800/year
Healthcare Out-of-Pocket: The Hidden Budget Line
The $6,188 in household healthcare spending does not include employer-paid premiums — only the employee’s share of premiums plus direct out-of-pocket costs. Total healthcare costs for the average family including employer contributions are approximately $25,000–$30,000, making healthcare arguably the largest single household cost when employer and employee shares are combined.
What Your Budget Should Look Like vs. National Average
Using the 50/30/20 framework on a $75,000 income:
| Category | 50/30/20 Target | National Average (75K household) | Difference |
|---|---|---|---|
| Needs (housing, food, transport, healthcare) | 50% ($37,500) | ~68% ($51,000) | −$13,500 |
| Wants (entertainment, dining out, discretionary) | 30% ($22,500) | ~17% ($12,750) | +$9,750 |
| Savings/debt repayment | 20% ($15,000) | ~15% ($11,250) | −$3,750 |
The national average household at $75,000 spends significantly more on needs — driven primarily by housing and transportation — than the 50/30/20 framework suggests. This is partly structural (high housing costs) and partly a choice (vehicle selection).
Three Categories Where Most Households Can Find Savings
Based on the data, the three categories with the most actionable savings potential for middle-income households:
-
Transportation — downgrading a vehicle or eliminating a second car is the single largest non-housing reduction available. Typical savings: $200–$600/month.
-
Dining out — reducing restaurant/delivery spending from the national average is straightforward and typically requires no sacrifice of actual nutrition. Typical savings: $100–$300/month.
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Housing — harder to change short-term but the highest-impact lever. Moving to a lower-cost area, adding a roommate, or house hacking (renting part of your home) can free $300–$1,000+/month.
For a detailed guide on building a budget around these benchmarks, see how to make a monthly budget.
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