What Do Americans Spend Their Money On?
Understanding the latest consumer spending trends in the United States and how consumer expenditure there is changing allows you to tweak your sales strategy to cater to buyers’ purchasing habits.
Aside from knowing how much the average US consumer spends per year, it’s also helpful to have a breakdown of US consumer spending by category. Here’s a look at some key American spending statistics.
US consumer spending statistics: key takeaways
- In 2023, housing was the largest consumer expenditure in the US, accounting for $25,436 per person, which represented nearly one-third (32.9%) of total spending.
- Transportation was the second-highest expense, with American consumers spending an average of $13,174 on commuting and travel, marking a 7.1% increase from the previous year.
- Food, personal insurance and pensions, and healthcare rounded out the top five US spending categories.
Top consumer spending categories (2023)
|
Consumer spending category |
Expenditure in 2023 |
Share of total expenditure |
|
Housing |
$25,436 |
32.9% |
|
Transportation |
$13,174 |
17.0% |
|
Food |
$9,985 |
12.9% |
|
Personal insurance and pensions |
$9,556 |
12.4% |
|
Healthcare |
$6,159 |
8.0% |
|
Entertainment |
$3,635 |
4.7% |
|
Cash contributions |
$2,378 |
3.1% |
|
Apparel and services |
$2,041 |
2.6% |
|
Education |
$1,656 |
2.1% |
|
Miscellaneous |
$1,184 |
1.5% |
|
Personal care products and services |
$950 |
1.2% |
|
Alcoholic beverages |
$637 |
0.8% |
|
Tobacco products and smoking supplies |
$370 |
0.5% |
|
Reading |
$117 |
0.2% |
What do Americans spend the most money on: top five consumer spending categories
The most recent data from the US Bureau of Labor Statistics shows that American consumers spend the most money on housing. In 2023, the average US consumer spent $25,436 on housing, which made up close to one-third (32.9%) of their total annual expenditure. This refers to money spent on both owned properties and rented accommodation, including those booked for vacations. The housing expenditure in 2022 was a 4.7% increase from the previous year’s $24,298.
Transportation was the second-largest expenditure of the year. Consumers spent $13,174 to commute in 2023, be it with their own vehicles or other forms of transportation. Like housing, expenditure on transportation also rose (by 7.1%) from $12,295 the preceding year.
Together, average annual expenditure on housing and transportation reached $38,610 in 2023. Given that total spending for the year was $77,280, this means that half (50%) of the average US consumer’s expenditure was on these two categories.
The third- and fourth-largest consumer spending categories in 2023 were food and personal insurance and pensions. US consumers spent $9,985 on food and $9,556 on personal insurance and pensions.
Health care rounds out the five biggest consumer spending categories, with an expenditure of $6,159.
US consumer spending by category: sixth to 10th
The sixth-largest expense was entertainment, on which the average US consumer spent $3,635. This includes admission fees and purchases related to pets and hobbies. This is followed by cash contributions and apparel and services, which totaled $2,378 and $2,041, respectively.
Education ($1,656) and miscellaneous ($1,184) spending made up the top 10 expenses in 2023.