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Chart showing: Consumer Spending by Generation (2023)

Consumer Spending by Generation (2023)

Crafting an effective marketing strategy that speaks to your buyers requires understanding consumer spending by generation, including how much the average person spends per year. More specifically, knowing how much your target audience spends can help you decide where, what, and how to market your products for better reach.

Here’s a look at consumer spending by generation in the United States.

Consumer spending by generation: key takeaways

  • In 2023, the average US consumer spent $77,280, a 5.9% increase from the previous year.
  • Generation X spends the most money annually, with an average expenditure of $95,692, making it the only demographic group whose yearly spending exceeds $90,000.
  • Housing is the top expense across all generations, with annual spending ranging from $18,735 for Generation Z to $28,832 for Generation X, reflecting a significant portion of each group’s total expenditures.

What demographic spends the most money (2023): table

Generation

Average annual expenditure (2023)

Silent

$49,206

Boomers

$70,207

Generation X

$95,692

Millennials

$81,589

Generation Z

$52,891

Consumer spending by generation: Generation X

Who spends the most money in America?

According to a recent study analyzing consumer spending by generation, Generation X is the demographic that spends the most amount of money per year.

The study defines Gen X as people born between 1965 and 1980. With an annual expenditure of $95,692, it is the only age group whose spending exceeds $90,000. Experts say this is because many consumers in this age group have significant financial responsibilities, often supporting both their children and aging parents.

The data on consumer spending by generation shows the largest share of Gen X’s annual expenditure goes to housing. At $28,832, this accounts for 30.1% of their total annual spend. This is followed by transportation, at $17,036 (17.8%), and personal insurance and pensions, at $14,135 (14.8%). In other words, more than 60% of Gen X’s yearly spending is on these three categories. 

Consumer spending by generation: millennials and boomers

Millennials, defined in the study as those born from 1981 to 1996, have the second-highest annual expenditure at $81,589. Like Generation X, their top spending categories are housing ($28,080), transportation ($14,009), and personal insurance and pensions ($11,898). For businesses targeting this group, understanding additional millennial online spending habits can offer valuable insights.

What do baby boomers spend their money on? The data shows that after millennials, boomers have the third-highest annual expenditure of $70,207—which is $25,485 less than that of Generation X. Their three largest expenditures are:

  1. Housing: $23,176
  2. Transportation: $11,816
  3. Food: $8,962

Consumer spending by generation: Generation Z and silent generation

Generation Z (defined as those born in 1997 or later) and the silent generation (those born in 1945 or earlier) have the lowest annual expenditures, at $52,891 and $49,206, respectively.

Generation Z’s top three expenditures are:

  1. Housing: $18,735
  2. Transportation: $9,992
  3. Food: $6,838

The silent generation’s top three expenditures are:

  1. Housing: $19,517
  2. Health care: $7,741
  3. Food: $6,001

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