The households that give away money each give away about $3,670 each per year. Or we’re giving money to charities, religious, educational or political organizations, or other extended family members and friends. households are using some hard-earned money to support others - like kids in college, ex-spouses or children not living there. Our Generosity Toward OthersĪbout half of U.S. We spend an additional $51 per month ($608 per year) on average for personal products like cosmetics and shaving cream, and services like haircuts and manicures. That’s no fun at all! The Cost of Looking Goodįast, cheap fashion, among other things, has helped lessen how much Americans spend on clothing and related services like dry cleaning and shoe repair.Īverage monthly clothing expenses are about $134 (that’s $1,604 per year). Some 12% of households, though, report no such expenditures in a typical four-month stretch of time. Spending on entertainment: Americans do find some time to enjoy their lives, as reflected in the $2,564 the average household devotes to entertainment each year. When it rises above that level, individuals and families start to become eligible for subsidies if they purchase insurance on the federal or a state health insurance exchange.

The Affordable Care Act says that health insurance is affordable if premiums cost no more than 9.5% of a household’s modified adjusted gross income. household income goes to healthcare expenses, a percentage that has been rising in recent years. households that reported making payments on it in 2013 was $284 per month.Ībout 6% of U.S. The average cost of health insurance for U.S. Within that 79% of households with any healthcare expenses, an average of $4,365 was paid out in 2013, including health insurance premiums and out-of-pocket costs for doctors, prescriptions and medical supplies. has been widely reported, and is revealed in households’ reported spending in this area: $3,631 on average.Ībout 79% of households had healthcare expenses in 2013, the most recent year for which this data is available from the federal Consumer Expenditure Survey, but before the federal health insurance mandate went into effect. Others may hang onto it, saving up for a car, a down payment on a house, a home renovation or a big vacation.And some made a dent in either credit cards balances or student loan principal.

Some will stash it in a retirement account. About 30% paid off an average of $1,661 toward their vehicles. In 2013, for example, 38% of households made average payments of over $4,000 to mortgage principal, or home equity lines of credit. households use about 8% of their income to either pay off debt, or increase savings - or sometimes both at the same time, as in the typical case of a mortgage payment. households has either life insurance, endowment, annuity or other personal insurance, at an average cost of about $1,231 per year. Smaller percentages of households make payments into government, railroad or private retirement plans. Self-employed entrepreneurs pay both the employer and employee amount directly to the federal government via the self employment tax. This money comes directly out of employees’ paychecks, while matching contributions are made by the employer. About 77% of households have this expense, paying $5,275 on average annually (this may cover more than one worker). The majority of this expenditure comes from the household’s contribution to Social Security. household spends $5,528 per year to protect its members from poverty in old age, or due to disability or death. This figure encompasses a wide range of rents from smaller towns to major metropolitan centers such as Los Angeles and New York. The 35% of Americans who rent pay just a little less than homeowners each year for their rent, maintenance costs, and renters insurance, an average of $9,477. The average mortgage payment also includes an additional amount each month that goes towards the principal, effectively turning cash earnings into home equity.Īverage rent in the U.S. Homeowners pay an average of $9,552 per year (nearly $800 per month) on mortgage interest, property taxes and other expenses such as maintenance, repairs and homeowners insurance. households own their home, and more than half of homeowners have a mortgage. The remaining $7,068 covers utilities and other household operational expenses and equipment.Ībout 64% of U.S. That’s an average of $10,080 for direct payments on rent or mortgage interest, property taxes and insurance, as well as any lodging costs on out-of-town trips. household spends $17,148 on all things related to housing.

Example of household budget