How Americans Actually Spend Their Money (2026 Data)

Where does money actually go? Not where budgeting blogs say it should go. Where it actually goes, based on data.

The Bureau of Labor Statistics publishes annual Consumer Expenditure Survey data that breaks down exactly how American households allocate their spending. The following analysis uses the most recently available data to paint a realistic picture.

The Big Picture: Average Annual Household Spending

According to BLS Consumer Expenditure data, the average American household spends approximately $72,967 per year, or roughly $6,081 per month.

That total breaks down as follows:

Category	Annual Spending	Monthly Spending	Percentage of Total
Housing	$24,298	$2,025	33.3%
Transportation	$12,295	$1,025	16.8%
Food	$9,713	$809	13.3%
Personal insurance and pensions	$8,751	$729	12.0%
Healthcare	$5,850	$488	8.0%
Entertainment	$3,538	$295	4.8%
Cash contributions (charity, gifts)	$2,415	$201	3.3%
Apparel and services	$1,945	$162	2.7%
Education	$1,443	$120	2.0%
All other	$2,719	$227	3.7%

Source: Bureau of Labor Statistics, Consumer Expenditure Survey.

Housing: The Largest Expense by Far

At 33.3% of total spending, housing is the single biggest financial commitment for most households. This category includes:

Rent or mortgage payments
Property taxes
Maintenance and repairs
Utilities (electricity, gas, water)
Household furnishings and equipment
Household operations

The National Association of Realtors reports that the median existing home price in the United States reached approximately $407,600. For renters, the Census Bureau's American Community Survey shows the median monthly rent at roughly $1,400 nationally, though this varies dramatically by location.

What the data suggests: The commonly cited guideline of spending no more than 30% of gross income on housing originated from the Department of Housing and Urban Development. Based on current data, many Americans are at or above this threshold, particularly in high-cost metropolitan areas.

Food: The Category Most People Underestimate

Total food spending averages $9,713 per year, split between two sub-categories:

Sub-Category	Annual Amount	Monthly Amount
Food at home (groceries)	$5,703	$475
Food away from home (restaurants, takeout)	$4,010	$334

Source: BLS Consumer Expenditure Survey.

The restaurant and takeout category ($334 per month average) is where many households have the most room for adjustment. According to the USDA's Thrifty Food Plan, a household can feed one adult nutritionally on approximately $175 to $250 per month by cooking at home.

Transportation: The Surprise Second Place

Many people do not realize transportation is the second largest expense category. At $12,295 per year, it includes:

Vehicle purchases and financing
Gasoline and motor oil ($2,349 average)
Insurance ($1,708 average)
Maintenance and repairs
Public transportation

AAA estimates the average annual cost of owning and operating a new vehicle at approximately $12,182 in 2026, including depreciation.

Spending by Income Level

How spending breaks down changes significantly based on income:

Income Level	Annual Spending	Housing %	Food %	Savings Rate
Bottom 20% (under $25,000)	$31,384	40.1%	16.2%	Negative (spending exceeds income)
Middle 20% ($50,000 to $75,000)	$59,874	33.5%	13.8%	5 to 8%
Top 20% (over $150,000)	$131,704	30.2%	11.1%	15 to 25%

Source: BLS Consumer Expenditure Survey, income quintile data.

Two notable patterns emerge from this data:

Lower income households spend a much larger percentage on housing and food, leaving almost nothing for savings.
Higher income households spend more in absolute dollars but less as a percentage, allowing significantly higher savings rates.

The Savings Gap

According to the Federal Reserve's Survey of Consumer Finances, the personal savings rate in the United States hovers around 4% to 5% of disposable income. This has decreased from historical averages of 8% to 10% in the 1970s and 1980s.

The Bureau of Economic Analysis reports that the personal savings rate was approximately 4.6% as of late 2025.

For context, at a 4.6% savings rate on the median household income of approximately $75,000, the average household saves roughly $3,450 per year, or $288 per month.

Healthcare: Growing Faster Than Income

Healthcare spending averages $5,850 per year per household. According to the Kaiser Family Foundation, healthcare costs have grown at approximately 4% to 6% annually over the past decade, consistently outpacing general inflation and wage growth.

The average annual premium for employer-sponsored family health coverage reached $23,968 in 2024 according to Kaiser, with employees contributing approximately $6,575 of that amount.

Entertainment and Subscriptions

Entertainment spending averages $3,538 per year ($295 per month). This includes:

Streaming services
Hobbies
Pets
Sports and recreation
Reading materials
Audio and visual equipment

A 2025 study by C+R Research found that the average American maintains 4.5 paid subscriptions at an average total cost of $219 per month, though many consumers significantly underestimate this number when surveyed.

What This Data Means for Budgeting

These national averages provide useful benchmarks but individual circumstances vary widely based on location, family size, income level, and personal priorities.

Practical applications of this data:

For those spending significantly more than these averages in any category, it may be worth investigating why.
For those spending less, it confirms their approach is working.
The categories with the most room for optimization in most households tend to be food away from home, subscriptions and entertainment, and transportation costs.

Sources and Further Reading

Bureau of Labor Statistics Consumer Expenditure Survey: bls.gov/cex
Federal Reserve Survey of Consumer Finances: federalreserve.gov/econres/scfindex.htm
USDA Food Plans: fns.usda.gov/cnpp/usda-food-plans-cost-food-reports
Kaiser Family Foundation Health Coverage: kff.org
Bureau of Economic Analysis Personal Savings Rate: bea.gov

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