Average Monthly Expenses by Category

The latest data show average monthly expenses of $6,544 for consumers. Consider the 50/30/20 model for your own spending.

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Edited by other Updated Jan 5, 2026 Without a budget — or come to think of it, even with one — you might wonder how your average expenses compare with "what's normal." We took the average annual expenses from the 2024 Consumer Expenditures Survey and divided them by 12 to estimate average monthly expenses in a variety of categories. The U.S. Bureau of Labor Statistics conducted the survey, and it was released in December 2025. See how your expenses stack up.

Average monthly expenses by category

The average expenditures among all consumer units totaled $78,535 annually. That's up 1.8% from 2023.

Average monthly expenses for housing:

Average expenses for housing totaled $26,266 annually. That works out to $2,188 per month.

Average monthly expenses for transportation:

$13,318 annually. That works out to $1,109 per month.

Average monthly expenses for food:

$10,169 annually. That works out to $847 per month.

Average monthly expenses for personal insurance and pensions:

$9,797 annually. That works out to $816 per month.

Average monthly expenses for entertainment:

$3,609 annually. That works out to $300 per month. » MORE: 2026 Consumer Outlook Report – 51% Say Prices Will Worsen » MORE: The average annual expenditures reported here represent survey results from more than 135,000 consumer unit participants. Note that consumer units consist of "families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share major expenses."

Average annual expenses that increased year over year

Among the 14 major elements of household spending in 2024, housing had the most significant increase, according to the BLS report: “Average annual expenditures on housing increased 3.3% in 2024, after a 4.7% increase in 2023. Within this category, expenditures on owned dwellings and rented dwellings both increased in 2024, by 7.0% and 5.4%, respectively.”

Average annual expenses that declined

Major spending components that declined in 2024 were food, dropping from 6.9% in 2022-2023 to 1.8% in 2023-2024. Transportation also saw a reduction from 7.1% in 2022-2023 to 1.1% according to the latest BLS data. Other major categories are also on the decline, including entertainment, health care and cash contributions. » MORE: How to save money » MORE:

How much should I spend each month?

With all of the variables, stacking your household's spending up against other similarly sized households in the U.S. will be a rough comparison at best. Spending can be affected by income, the cost of living in your area, your household's health care needs, transportation, debt and taxes. One option is the 50/30/20 budget. With this formula, you aim to devote 50% of your take-home pay to needs like rent and insurance, 30% to wants like vacations and entertainment, and 20% to debt repayment and savings. Your starting amount is your take-home income, after tax and with payroll deductions added back in. That figure determines how much you can afford to spend each month. Start with the 20% for savings and debt. Pay yourself first by setting aside money for an emergency fund and retirement. Then turn to debt. If you have outstanding credit card debt, for instance, work on knocking that down. Next, subtract your regular bills. If your monthly take-home pay is $5,000, shoot to spend no more than half of that, or $2,500, on essentials such as your rent and electric bill. Finally, give yourself room to breathe. Just like a restrictive diet, trying to hold to a budget that doesn’t allow for fun isn’t realistic. That's where the 30% spending on “wants” comes in. If your spending isn’t fitting the 50/30/20 model, you can try a side hustle to make more money — get a raise or switch to a job with a higher salary. To make your current pay stretch further, find ways to save money, like cutting bills and shopping strategically. » MORE: How to budget money » MORE: Explore more on Article sources NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. U.S. Bureau of Labor Statistics. Consumer Expenditures 2024. Accessed Jan 5, 2026. About the authors CFP® Hal M. Bundrick is a former NerdWallet personal finance writer. He is a certified financial planner and former financial consultant and senior investment specialist for Wall Street firms. Hal advised families, business owners, nonprofits and trusts, and managed group employee retirement plans. Published in Mulka Lisa Mulka is a freelance writer specializing in personal finance content. With more than 15 years of writing experience, Lisa most recently authored a book on personal financial literacy and served as lead writer on the FDIC’s Money Smart for Young People program. She holds a bachelor’s in creative writing, and master’s degrees in written communication and in educational technology. Lisa lives with her husband and two children in Michigan, where she spends her free time teaching the next generation of writers at Johns Hopkins University Center for Talented Youth. Average monthly expenses by category Average annual expenses that increased year over year Average annual expenses that declined How much should I spend each month? What is a budget? A simple guide to getting started Savings Goal Calculator How to Budget Money in 5 Steps 8 Ways to Track Monthly Expenses By Courtney Neidel How Much to Tip Just About Everyone By Laura McMullen 7 Best Personal Expense Tracker Apps of 2026 By Hal M. Bundrick, CFP®, Tiffany Curtis, Lisa Mulka