How Much Does the Average American Household Spend? A Breakdown of 2023 Expenses.

The U.S. Bureau of Labor Statistics (BLS) releases consumer spending data annually at the end of the year for the prior year. The latest data from the BLS at the end of 2024 reveals that in 2023, the average American household spent $77,280 on annual expenses. Below is a breakdown of this spending across different categories, ordered by percentage of total spending:

2023 Spending Breakdown (Ordered by Percentage)

• Housing - $25,436 (32.9%)
• Transportation - $12,990 (16.8%)
• Food - $9,986 (12.9%)
  • At home - $6,053
  • Out - $3,933
• Personal Insurance & Pensions - $7,990 (10.3%)
• Healthcare - $5,540 (7.2%)
• Entertainment - $3,030 (3.9%)
• Apparel & Services - $2,680 (3.5%)
• Cash Contributions - $1,990 (2.6%)
• Education - $1,680 (2.2%)
• Miscellaneous - $1,460 (1.9%)
• Personal Care & Services - $820 (1.1%)
• Tobacco & Smoking Supplies - $320 (0.4%)
• Reading - $90 (0.1%)

Key Takeaways

• Housing is the largest expense, accounting for 32.9% of total spending.
• Transportation and Food follow, making up 16.8% and 12.9%, respectively.
• Personal Insurance & Pensions represent a significant financial commitment at 10.3%.
• Healthcare costs take up 7.2%, reflecting the ongoing importance of medical expenses.
• Entertainment, Apparel, and Cash Contributions each take up small but notable portions of spending.

Understanding these numbers can help individuals make informed financial decisions and create budgets that align with their financial goals. By recognizing where money is being spent, Americans can find opportunities to save, invest, and spend smarter.

For more details, you can access the full BLS Consumer Expenditure Survey here:

• BLS Consumer Expenditure Survey 2023
• BLS News Release