Households Spend $253 More on Monthly Expenses

A new study has found that the average American spends $253 more on monthly expenses. 

GoBankingRates made this revelation after analyzing data from 20 types of spending, including food, housing, restaurants, and personal care items.

If that doesn’t sound like much, consider this: It’s enough to pay the utility bill for the average American — with nearly $50 left over. Multiplied over a year, it comes to more than $3,000.

monthly expenses
SEATTLE, WA – FEBRUARY 26: Cheese is displayed for sale at Amazon Go Grocery on February 26, 2020 in Seattle, Washington. The store in Seattles Capitol Hill neighborhood is Amazons first large retail grocery location that uses the cashier-free model. (Photo by David Ryder/Getty Images)

American Households Spent $253 More on Monthly Expenses

Prices for goods and services are at their highest level in 40 years, leaving people with less money for things like savings and paying off debt. According to the latest Consumer Expenditure Survey, Americans spent 9.1% more of their pay for their monthly expenses in 2021 than they did in 2020. 

You can determine why the average American family paid $253 more in their monthly expenses by checking the table below.

Housing $1,169 8.20% $96
Grocery $443 8.40% $37
Utilities $205 9.2% (Energy Services) $19
Auto Leases & Loans $159 5.0% (Overall Inflation Rate) $8
Gasoline $149 4.60% $7
Health Insurance $149 5.0% (Overall Inflation Rate) $7
Telecom $138 5.0% (Overall Inflation Rate) $7
Recreation & Entertainment $137 5.90% $8
Car insurance $125 15.00% $19
Restaurants $102 8.80% $9
Apparel $91 3.30% $3
Education $91 3.3% (Education & Communication Services) $3
Healthcare $78 1.0% (Medical Care Services) $1
Furniture $76 2.10% $2
Hotels $65 7.30% $5
Airfare $55 17.70% $10
Public Transportation $50 12.40% $6
Alcohol $37 4.50% $2
Personal Care Products $37 6.50% $2
Personal Care Services $31 5.40% $2
Total change 2023 $253
Sources: Morning Consult, BLS

Budgeting is the Key

Pulling together a family budget for monthly expenses may seem like a big job as Gargi Chaudhuri of Blackrock told GOBankingRates that he thinks inflation will stay “stubbornly high” for the rest of 2023.

But sticking to your budget can help you avoid spending money on things you don’t need and keep you on track to save money, whether you want to put more money in your savings account, lock in a rate with a CD, or try to get a higher return with a money market account.

READ ALSO: Rupert Murdoch’s Net Worth Now Roughly At $9 Million – Reports

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