Budget Benchmarks by Income: What Americans Actually Spend
In 2024, the average U.S. household spent $78,535 a year against average income before taxes of $104,207, according to the BLS Consumer Expenditure Survey. Spending on housing and transportation alone accounted for roughly half of that total, and the poorest fifth of households spent nearly 42 cents of every dollar on housing versus about 29 cents for the richest fifth.
Where the average household’s money goes
| Category | Annual $ | % of spending |
|---|---|---|
| Housing | $26,266 | 33.4% |
| Transportation | $13,318 | 17.0% |
| Food | $10,169 | 12.9% |
| Personal insurance & pensions | $9,798 | 12.5% |
| Healthcare | $6,197 | 7.9% |
| Entertainment | $3,609 | 4.6% |
| Education | $1,569 | 2.0% |
Income quintile boundaries, 2024
BLS divides households into five equal-size groups (quintiles) by income before taxes. Here are the boundaries and total spending for the two quintiles BLS reports directly:
| Quintile | Income before taxes (lower bound) | Average annual total expenditure |
|---|---|---|
| Lowest 20% | $0 | $35,046 |
| 2nd 20% | $29,932 | — |
| 3rd 20% | $57,452 | — |
| 4th 20% | $94,511 | — |
| Highest 20% | $155,925 | $150,342 |
How housing and retirement savings shift by income
Two categories move the most as income rises: housing shrinks as a share of spending, and retirement savings grows dramatically.
| Category | Lowest 20% | Highest 20% | National average |
|---|---|---|---|
| Housing (% of spending) | 41.6% | 29.3% | 33.4% |
| Personal insurance & pensions (% of spending) | 2.0% | 18.1% | 12.5% |
For the lowest-income households, that ~2% on “personal insurance and pensions” is mostly mandatory payroll withholding (Social Security and Medicare), not voluntary 401(k) or IRA savings — which is one reason a flat 20%-of-income savings target is unrealistic at the bottom of the income distribution. Every published salary page on this site applies this same income-adjusted housing share to give a more realistic budget than a flat national average would.
How to cite this page
“Budget Benchmarks by Income.” SimpleBudgetPlanner, 2025. Data derived from the U.S. Bureau of Labor Statistics Consumer Expenditure Survey, 2024. https://simplebudgetplanner.com/budget-benchmarks-by-income
Primary source
U.S. Bureau of Labor Statistics, “Consumer Expenditures — 2024” (published December 2025), and “Housing and transportation accounted for 50 percent of household spending in 2024” (BLS, The Economics Daily). See Methodology for exactly how these figures are applied elsewhere on this site.
Last updated . Figures use current IRS and BLS data — see methodology.