According to the Bureau of Labor Statistics, the average American household earns an average of $78,635 a year before taxes and spends over 77% of that on “basic needs.” But studies have shown that regardless of income, budget percentages remain the same across categories. So, how does your household compare?
- Housing
The average American spends roughly 33% of their income on shelter. This can include property rental, mortgage interest, property taxes, maintenance, repairs, and home insurance. - Transportation
Americans spend an average of 16% of their total income on transportation, including the purchase and upkeep of their vehicle. - Food
Whether cooking at home or eating out, Americans spend an average of 13% of their income on food. - Insurance
After the “basic needs” are covered, Americans spend an average of 12% of their income on personal insurance and pensions. - Healthcare and Health Insurance
The average American household spends an average of 8% of their total income on health care and health insurance. - Entertainment
At the end of the day, Americans still manage to spend an average of 4% of their income on entertainment. - Cash Contributions
Americans value charitable giving by spending an average of 3% of their income on cash contributions. - Apparel
Finally, Americans spend 3% of their total income on apparel.
Disclaimer: The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with Grandview Asset Management, LLC. The material provided is for general information, and should not be considered a solicitation for the purchase or sale of any security and does not constitute individualized investment advice. Copyright 2020 FMG Suite.