With more than $3.6 trillion in retail sales in the first half of 2023 alone, the United States market definitely shows potential. So how much does the average American spend per year?
Average American spending per year
According to the latest statistics, the average yearly expenses of a US consumer in 2022 hit $72,967—an average of around $6,080.58 per month. For more context, the average income (before taxes) was $94,003 ($7,833.58 per month).
This represented a 9% increase from 2020, during which average consumer spending in the US was $66,928. In comparison, the year before saw spending rise by a slightly quicker rate of 9.1%, from $61,332 in 2020.
From 2020 to 2022, US consumers increased their average annual expenditure by a total of 19%, with an average annual growth rate of 9.1%.
It’s worth noting that the rate of increase in average consumer spending in the US over the past two years has been faster than the rate of increase in income (before taxes). From 2020 to 2022, the average American income rose from $84,352 to $94,003—an 11.4% overall increase and an average annual growth rate of 5.6%.
Average consumer spending: top expenses
Further analysis of US consumers’ average yearly expenses shows that their biggest expenditure is on housing. In 2022, the typical US consumer spent $24,298 on housing, which covered expenses on both owned and rented dwellings and accommodation spent on out-of-town trips. This represented one-third (33.3%) of their average yearly expenses and a 7.4% annual increase.
US consumers’ second-highest expense was transportation. Of the average yearly expenses in 2022, $12,295, (totaling 16.9%), was spent on transportation. This included vehicle purchases, gasoline, public transportation, and other related expenses.
The third-biggest expenditure was food. The average US consumer spent $9,343 on food in 2022, 12.7% more than they did in 2021. This is followed by personal insurance and pensions and healthcare, on which consumers spent $8,742 and $5,850, respectively.
In total, the top three expenditures of US consumers in 2022, housing, transportation, and food, added up to $45,936—or nearly two-thirds 63% of their average yearly expenses.
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How Much Does the Average Person Spend per Year? FAQ
How much does the average single person spend?
This is difficult to answer definitively, as spending habits vary greatly from person to person. Factors such as income, lifestyle, and location will all affect spending. According to the Bureau of Labor Statistics, the average single person spends around $72,967 annually on goods and services.
How much does the average person spend a day?
The average person spends about $199.91 per day, according to the Bureau of Labor Statistics. This figure includes spending on housing, food, transportation, entertainment, clothing, healthcare, and other goods and services.
How much does the average person spend on clothes per year?
The average amount spent on clothing per year by the average person varies widely depending on factors such as age, gender, and location. Generally speaking, the average person in the United States spends around $1,900 per year on clothing and related accessories.
What does the average American spend money on?
The average American spends money on housing (including rent/mortgage payments, maintenance, and utilities), transportation (including gas, car payments, and public transportation), food (groceries and dining out), healthcare, and entertainment (movies, sporting events, and recreation).