Vermont Retirement Planners, LLC

54 Highland Avenue
Manchester Center, VT 05255
nick@vtretirement.com
(802) 367-3958

87 North Main St.
Rutland, VT 05701
nick@vtretirement.com
(802) 772-7945

Money

The Average American Budget

The Average American Budget

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?

Bureau of Labor Statistics, 2019

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.

Bureau of Labor Statistics, 2019
33%

of the average American budget

$20,091

Transportation

Americans spend an average of 16% of their total income on transportation, including the purchase and upkeep of their vehicle.

Bureau of Labor Statistics, 2019
16%

of the average American budget

$9,761

Food

Whether cooking at home or eating out, Americans spend an average of 13% of their income on food.

Bureau of Labor Statistics, 2019
13%

of the average American budget

$7,203

Insurance

After the “basic needs” are covered, Americans spend an average of 12% of their income on personal insurance and pensions.

Bureau of Labor Statistics, 2019
12%

of the average American budget

$6,831

Healthcare and Health Insurance

The average American household spends an average of 8% of their total income on health care and health insurance.

Bureau of Labor Statistics, 2019
8%

of the average American budget

$4,968

Entertainment

At the end of the day, Americans still manage to spend an average of 4% of their income on entertainment.

Bureau of Labor Statistics, 2019
4%

of the average American budget

$3,226

Cash Contributions

Americans value charitable giving by spending an average of 3% of their income on cash contributions.

Bureau of Labor Statistics, 2019
3%

of the average American budget

$1,888

Apparel

Finally, Americans spend 3% of their total income on apparel.

Bureau of Labor Statistics, 2019
3%

of the average American budget

$1,866

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