American Households' Average Monthly Expenses: $6,440

The average American household spends $6,440 per month, according to the latest Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS).

That's a $359 increase from average monthly household spending in 2022 and a $2,182 increase from 2013. Those numbers are a reflection of inflation pushing Americans to spend more.

How Americans allocated their spending between food, housing, and other major expenses remained mostly consistent from 2022 to 2023. Spending on food slightly increased while housing and entertainment spending declined somewhat.

Understanding how the typical household budget breaks down can provide a benchmark to compare your own spending habits.

Table: Average monthly spending by category

How much does the average household spend per month?

The average monthly expenses for a household in 2023 were $6,440. Average spending for the entire year came out to $77,280.

Average expenses can vary by region -- some cities are cheaper to live in and others are more expensive. The figures presented in this article are national averages.

Average spending grew 6% from 2022 to 2023. That's a slowdown from the previous year, when spending grew 9%.

BLS tracks spending by consumer unit, which it defines as any of the following:

• Families
• Single persons living alone
• Single persons sharing a household with others but who are financially independent
• Two or more people living together and sharing major expenses

For example, two parents and a child would be one consumer unit. Three roommates would be three consumer units. The average consumer unit is 2.5 people and the average age is 52.

The BLS survey only calculates annual spending, so we divided those numbers by 12 to get the average household expenses per month. Because we rounded to the nearest dollar, there may be small discrepancies when comparing the monthly and annual numbers.

Not all typical expenses occur on a monthly basis. Many expenses are intermittent, like car repairs, buying textbooks, or spending on a new TV. For example, most people aren't spending $288 per month on entertainment. But over the course of the year, the average is $3,458.

Average monthly spending on housing: $2,120 (5% increase)

Housing is by far the largest expense for Americans. Monthly housing expenses in 2023 averaged $2,120, a 5% increase from 2022. Over the entire year, Americans spent $25,436 on housing on average.

Of the $2,120 Americans spend on housing each month, $1,292 of it goes toward housing payments, like a mortgage or rent. That amount can change significantly depending on location, house size, and whether a person has roommates.

Here's a more detailed breakdown of different expenses of homeownership and how much Americans spend in each category.

Average monthly spending on transportation: $1,098 (7% increase)

Americans spent $1,098 a month on transportation in 2023, or $13,174 over the full year.

Transportation is the second-largest monthly expenditure. Spending on transportation was up 7% in 2023 compared to 2022.

Transportation expenses are spread out but add up to be significant. Maintenance and repairs aren't generally monthly expenses but amounted to $975 on average over the entire course of 2023.

People don't usually buy a new car every year, but when they do, it's a major purchase. Depending on the payment schedule you choose, auto insurance could be a monthly expense or one that you pay twice a year.

Americans spent more on vehicle purchases in 2023 compared to 2022, but less on repairs and maintenance.

Spending on gas fell by 14% year over year, a reflection of falling gas prices. Public transportation expenditures rose for the second year in a row, continuing its return from a low in 2020.

Average monthly food spending: $832 (7% increase)

Food spending includes groceries and food away from home, which is any food that you pay someone else to prepare for you. Average food spending increased 7% from 2022 to 2023. On average, Americans spent $832 per month on food in 2023 and $9,985 over the full year.

Spending on food includes groceries and eating out. Americans spent an average of $504 a month on groceries in 2023, up 6% from the previous year, and $328 a month on dining out, up 8% from the previous year.

Food prices and particularly grocery prices have been hit hard by inflation. If you've seen your own supermarket spending increase, a grocery credit card could help you save on costs.

Average monthly personal insurance and pension spending: $796 (9% increase)

Personal insurance and pensions accounted for $796 in monthly spending in 2023 and $9,556 over the full year, a 9% increase from 2022.

This category includes life insurance, personal liability insurance, accident insurance, and disability insurance. It doesn't include homeowners insurance or renters insurance, which are part of housing costs, or auto insurance, which is part of transportation.

Just 6% of spending in this category goes toward personal insurance. The remaining 94% goes to pensions and Social Security. That includes contributions to retirement accounts and the Social Security benefits withheld from paychecks.

Average monthly healthcare spending: $513 (5% increase)

Average monthly healthcare spending amounted to $513 in 2023, up 5% from 2022.

Sixty-six percent of healthcare spending in 2023 went toward health insurance premiums, which cost an average of $337 a month.

Spending on drugs fell 4% year-over-year. In 2022, Americans spent $615 a month while in 2023 they spent $591 on average.

Average monthly spending on entertainment: $303 (5% increase)

Americans spent 5% of their monthly budgets on entertainment in 2023, adding up to $303 per month and $3,635 over the entire year. That's up 5% from 2022 and is a rebound from 2022 when entertainment spending fell.

BLS made some interesting decisions in what was and wasn't considered entertainment. As entertaining as pets can be, pet owners would probably argue that they deserve their own category. Avid readers may be surprised to learn that reading doesn't fall under entertainment (it has its own category instead).

Average monthly spending on apparel and services: $170 (5% increase)

Apparel spending grew for the third year in a row after plummeting 24% from 2019 to 2020, likely due to Americans spending more time in social situations after being less concerned about dressing up during the early days of the pandemic.

Americans spent an average of $170 per month on apparel and related services in 2023, $2,041 over the year. That's up 5% from 2021.

Average monthly expenses by household size

Average monthly spending can vary by household size, and data shows that although one-person households spent much less than all other households in 2023, they were the only group to spend more than their after-tax income.

Average monthly spending by age

Americans between 45 and 54 years old spent $8,110 on average per month in 2023, the most out of any age group. Americans aged 35 to 44 years old spent a few hundred dollars less, at $7,578.

Americans under 25 years old spent the least, with their average monthly expenses in 2023 coming out to $4,130. Their spending was closest to Americans at the other end of the age spectrum -- those over 65 years old spent $5,007 on average per month in 2022.

Americans 65 and older are the only group that spent more in 2023 than their after-tax income.

It's no surprise that Americans toward the middle of the age range are spending the most per month. That segment of the population are likely to make the most money while also having taken on significant financial responsibilities, like raising kids and paying off auto and home loans. As Americans reach retirement age, their spending and income quickly fall off.

How do your average monthly expenses compare?

It's interesting to see what the typical American spending habits look like and compare them to your own. Maybe you find that you spend similar portions of your monthly income in each category, or your spending patterns could be completely different.

Neither on its own is a good or a bad thing. We all have different things we value and different areas where we're willing to spend more money. If you're happy with your spending habits and you feel financially secure, that's what's important.

If you're not able to save as much money as you like, then it's a good idea to reevaluate your typical spending and your budget. Whether it's dining out, entertainment, or something else, there could be an area where you're spending more than you realize and are able to cut back.

Sources

• U.S. Bureau of Labor Statistics (2023). "2022 Consumer Expenditure Survey."