Average Monthly Expenses Study 2024 (2024)

U.S. consumers spent an average of $6,081 per month in 2022, according to the Bureau of Labor Statistics’ most recent Consumer Expenditure Survey.

The 2022 monthly average was a 9% increase from the previous year. Also, American consumers were hit with price increases that outpaced average income increases.

The survey reveals average spending by category and breaks this down for individuals and households of all sizes, so you can compare your expenses to the average American’s.

Average Monthly Expenses by Household Size

According to the U.S. Bureau of Labor Statistics, the average U.S. household spent $72,967 in 2022. But families come in all shapes and sizes, so what does “household” mean?

Using tools provided by BLS, we’re able to break down Americans’ average monthly and annual expenses by household size to offer a more accurate picture of the economic landscape faced by individuals and families in 2022.

Average Expenses of U.S. Households in 2022 and 2021

Average Monthly Expenses for One Person

Average monthly expenses in 2022 for one person were $3,693, or $44,312 annually. This represented an 8.5% increase, or $287.75 per month, from 2021. In 2021, the average monthly expenses for a single individual totaled $3,405.

Average Monthly Expenses for a Family of Two

Households with two people had average monthly expenses of $6,372 in 2022, or $76,468 annually. This was a 10.2% increase from 2021, when the average family of two spent $5,782 per month, meaning families of two saw the highest increase in monthly expenses.

Average Monthly Expenses for a Family of Three

Average monthly expenses for a family of three in 2022 were $7,189, or $86,265 annually. This was a 9% increase compared to 2021, during which average expenses for a family of three were $6,597.

Average Monthly Expenses for a Family of Four

In 2022, families with four members averaged $8,460 in monthly expenses, or $101,514 annually. This was roughly 9.2% higher than in 2021, when families of four had a monthly expense average of $7,749.

Average Monthly Expenses for a Family of Five or More

Sometimes, surveys can reveal statistical inconsistencies and anomalies, as is the case with BLS data for families of five or more. According to the survey, the average monthly expenses for families of five or more were $8,068, which is $392 lower than we saw for families of four. Families of five or more saw their expenses increase by an average of 9% from 2021 to 2022.

Where Do Americans Spend the Most?

Looking at average spending totals is helpful, but BLS data allows us to dissect household expenses even further. The reality for many American households is that expenses increased between 2021 and 2022 in almost every major spending category.

The Bureau of Labor Statistics broke down average annual expenses into spending categories. Here’s a closer look at where households spent the most money in 2022:

• Housing: 33.3%
• Transportation: 16.8%
• Food: 12.8%
• Personal insurance and pensions: 12%
• Healthcare: 8%
• Entertainment: 4.7%
• Other expenses: 4.1%
• Cash contributions: 3.8%
• Apparel and services: 2.7%
• Education: 1.8%

Americans saw significant expense increases between 2021 and 2022 in many of the categories listed above. Several factors contributed to increases in monthly expenses. Let’s look closer at some of these expense increases.

Housing

The average American household spent $24,298 on housing in 2022, or $2,025 per month. Housing expenses increased by 7.4% overall year-over-year.

The data breaks down into three housing categories: homeowners, renters and other lodging. The largest increase within housing was for other lodging, which increased by 30.9%, thanks to a 38.6% increase in booked lodging for travel.

Transportation

Transportation expenses sat at $12,258, or $1,022 per month, for the average American household in 2022. This represents an annual increase of 12.2%.

The increase was in large part due to an 86.9% increase in public and other transportation spending, which includes fares for mass transit buses, trains, airlines, taxis, boats and school buses with a fee charge. There was also a 45.3% increase in gasoline, other fuels and motor oil. Urban consumers saw a larger increase (16.6%) than those who live in rural areas, who saw a 3.3% decrease in total transportation spending.

Food

If it felt like you spent more on food in 2022, you probably did. Food expenses saw the second-highest increase in 2022, at 12.7%. The average household spent $9,340 on food in 2022, which comes out to $778 per month.

American consumers experienced major increases in food expenditures at home and away from home. The 2022 increase exceeded 2019 numbers for the first time since the beginning of the Covid-19 pandemic.

Personal Insurance and Pensions

Consumers also saw an 11% increase in expenses related to personal insurance and pensions, spending $8,756 in 2022, or $730 per month​​.

The increase was the result of increased pension and Social Security contributions over the year. Americans also made significant non-payroll reposits to retirement plans in 2022. Life insurance and other insurance expenses increased, too.

Other Expenses

Consumers spent a large percentage of their money on the four expense categories listed above, but they weren’t the only areas that saw a change from 2021.

• Entertainment: $288 per month, down 3.1%
• Cash contributions: $230 per month, up 14.1%
• Apparel and services: $162 per month, up 10.9%
• Healthcare: $488, up 7.3%
• Personal care products and services: $72 per month, up 12.3%

The only expense category to experience a decrease was entertainment, which saw a 22.7% increase in 2021, the first year after the Covid-19 pandemic hit. The largest expense increase of 2022 belongs to cash contributions, which increased by 14.1% in 2022. Cash contributions include donations to religious, educational, charitable and political organizations, but also include alimony and child support payments.

Impact of Inflation on Household Expenses

Rising inflation, which has been a concern for Americans since early 2022, had a direct impact on household expense increases for Americans last year.

As mentioned earlier, the average annual expenses for all consumers in 2022 increased by 9% to $72,967. Over the same period, the Consumer Price Index (CPI) for all urban consumers rose 8%. The Bureau of Labor Statistics produces the CPI, which is the most widely used measure of inflation in the U.S. It’s worth noting that average income before taxes only increased by 7.5% during this time period.

Breaking down the CPI by category can help explain why American households spent so much more last year on transportation, food, insurance and pensions. From December 2021 to December 2022, fuel prices saw the most dramatic increase (41.5%), followed by a 28.5% increase in airfare, a 19.3% increase in the cost of gas utilities, a 14.3% increase in the cost of electricity and a 14.2% increase in motor vehicle insurance prices. The cost of eating food at home rose by 11.8%, fueled by an increase in the prices of all of the major food groups—including particularly steep increases in the prices of grains and dairy products. The cost of dining out rose by 8.3%.