Money

The Average American Budget

The Average American Budget

According to the Bureau of Labor Statistics, the average American household earns an average of $101,805 a year before taxes and spends almost 80% of their available income on basic necessities such as housing, food, and clothing. So, how does your household compare?

Bureau of Labor Statistics, 2025

Housing

The average American spends roughly 33% of their income on shelter. This can include property rent, mortgage interest, property taxes, maintenance, repairs, and home insurance.

Bureau of Labor Statistics, 2025
33%

of the average American budget

$20,091

Transportation

Americans spend an average of 17% of their total income on transportation, including the purchase and upkeep of their vehicle.

Bureau of Labor Statistics, 2025
17%

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, 2025
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, 2025
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, 2025
8%

of the average American budget

$4,968

Entertainment

At the end of the day, Americans still manage to spend an average of 5% of their income on entertainment.

Bureau of Labor Statistics, 2025
5%

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, 2025
3%

of the average American budget

$1,888

Apparel

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

Bureau of Labor Statistics, 2025
3%

of the average American budget

$1,866

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