topic Re: Average Spending by Americans (data based on age and expense category) in Credit in the News

Average Spending by Americans (data based on age and expense category)

Revelate — Mon, 18 Mar 2019 20:31:08 GMT

https://www.gobankingrates.com/saving-money/budgeting/how-much-average-american-spends-daily/

Interesting to me anyway, didn't see how it broke down whether by individual or if this was by household, I was about $3 below daily spending for my age slice, haven't yet dug into the numbers to see where I'm tracking though I know my housing expense is higher than their average for me.

Also didn't see a category for auto payment for example in some of their listed data.

Re: Average Spending by Americans (data based on age and expense category)

Anonymous — Tue, 19 Mar 2019 05:35:00 GMT

Very interesting! Note that my spending is considerably less than what the information shows. Wonder as their spending seems high to me?

Re: Average Spending by Americans (data based on age and expense category)

Revelate — Tue, 19 Mar 2019 06:38:15 GMT

@Anonymous wrote:
Very interesting! Note that my spending is considerably less than what the information shows. Wonder as their spending seems high to me?

Averages skew badly to be fair. For example my current expense profile after truing it up comes to 185.1 daily (total monthly expenses / 30) vs 189.13 in the article, at age 43 single / Los Angeles owner. There are plenty of places to reduce spending too in my life for that matter.

That said I'm pretty sure it's household now looking at the numbers though I too am a little skeptical of their total line given it's nearly 2k / month off the list expenses ~3800 vs ~5674; however, a lot of things may not be listed too like I suspect a bunch of Americans have an auto payment, even more have vehicle registration fees, and homeowners have property taxes and insurance too among other non-trivial expenses. Napkin math calculation vs. my own budget to get a flavor of a more complete calculation than what they show, presumably a state with more extreme weather than SoCal too looking at their utility line.

Monthly Expenses	Amount	Notes	Article Avg
Mortgage	1818	Monthly	1174.8
HOA	482	Monthly	Inc. Housing
Auto	869	Monthly	0
Cell (Phone&Watch)	80	Monthly	118.2
Internet	50	Monthly	Entertainment
Electricity	100	Monthly	347.4
Gas (Stove)	6	Monthly	Inc. Utilities
Home Insurance	30	Amortized	Inc. Housing
Auto Insurance	90	Amortized	78.6
Property Tax	400	Amortized	Inc. Housing
Car Registration	57	Amortized	0
Amazon Prime	10	Amortized	Entertainment
CC Fees	40	Amortized	0
Charity	10	Amortized	129.9
Economist	11	Amortized	Entertainment
Netflix	10	Monthly	328.8

Total Semi-Fixed	4063

Food	600		770.7
Slush Fund	500	Other listed	846.6
Work Expenses	400		0

TOTAL	5563	currently	3795

Re: Average Spending by Americans (data based on age and expense category)

Anonymous — Tue, 19 Mar 2019 10:47:37 GMT

I find this an interesting comparison. Thanks for sharing!

Re: Average Spending by Americans (data based on age and expense category)

Anonymous — Tue, 19 Mar 2019 16:10:15 GMT

Revelate ... household would make the numbers more real in my mind. For many years I have spent around $78.93 a day as a single person ($78.93 per day spend x 365 days a year = $28,809.45 per year). Using my budget in a format similar to yours (not leaving anything out - except a slush fund). When you pull up Baby Boomers older for a $135.73 a day (365 days times $135.73 = $49,541.45). I ask how a single widow or widower can average $49,541.45 a year. Do NOT believe it! In my readings over the last many years the number is too high as many people do not have much beyond their Social Security Benefits. The average Social Security monthly payments for 2017 is reported at $1,372 a month which seems high (depending on what the reporting sources are) but, anyways ... then you need to deduct $135.50 for Medicare Part B leaving a net = $1,236.50 monthly Social Security payment.

For myself, I usually lived on one pay check a month and the other checks(s) are do whatever I want to money but, certainly not everyone can do that (income with retirement set asides was in the six figures annually). Will add that where a person lives geographically will affect monthly expenses greatly as you have shown living in southern California (sister lives in the New Port Beach area and it ain't cheap).

True confession is that I live near the edge of civilization and the cost of living for housing (House Payment $582, Auto $311, Property Taxes $70, Auto Ins $90, Property Ins $65 for a single family residence) and are lower than some areas of the country. However, I still stick to the fact that Baby Boomers do not have the resources to support the $49K reported as an annual expense or $135 a day total. This was a good read and I am glad you found it and brough it to us for consideration. Sure have me thinking on the subject!

Re: Average Spending by Americans (data based on age and expense category)

pinkandgrey — Tue, 19 Mar 2019 19:29:03 GMT

Hmm that’s really interesting. I’m a Gen Z-er (I know—ick lol)and my spending isn’t quite that high even when you average everything out. Although I do spend a lot on my dog because he’s the love of my life. Lol

Re: Average Spending by Americans (data based on age and expense category)

Thomas_Thumb — Wed, 20 Mar 2019 15:36:51 GMT

@Revelate wrote:
@Anonymous wrote:
Very interesting! Note that my spending is considerably less than what the information shows. Wonder as their spending seems high to me?
Averages skew badly to be fair. For example my current expense profile after truing it up comes to 185.1 daily (total monthly expenses / 30) vs 189.13 in the article, at age 43 single / Los Angeles owner. There are plenty of places to reduce spending too in my life for that matter.

That said I'm pretty sure it's household now looking at the numbers though I too am a little skeptical of their total line given it's nearly 2k / month off the list expenses ~3800 vs ~5674; however, a lot of things may not be listed too like I suspect a bunch of Americans have an auto payment, even more have vehicle registration fees, and homeowners have property taxes and insurance too among other non-trivial expenses. Napkin math calculation vs. my own budget to get a flavor of a more complete calculation than what they show, presumably a state with more extreme weather than SoCal too looking at their utility line.

It's not clear from the article whether daily spend is individual or household. As "young" baby boomers with a sizeable monthly mortgage payment (15 year loan), DW and I are spending around $6500/month - about $1000 over average. The published spend levels appear overstated for an individual but, seem reasonable for a household. [$178/day = $5414/month = $64970/year]

Looking forward to mortgage payoff 10/2020 and being debt free.

The above graph taken from article : https://www.gobankingrates.com/saving-money/budgeting/how-much-average-american-spends-daily/

Re: Average Spending by Americans (data based on age and expense category)

Revelate — Thu, 21 Mar 2019 20:11:32 GMT

Yeah TT, true enough about dramatically reducing expenses by just not having an auto or home payment.

There's an outside chance I pick up yet another gig (I don't even know what to call it anymore, two full time gigs and a side hustle?) for a month or two at a place nobody wants to work for so they're throwing money for talent and willing to deal with the awkward schedule too for modernizing a small piece of their network.

I can do that... and at the rates that are being floated around even a month after taxes would take a serious dent out of my auto loan.

The problem I have with it financially is the auto loan is at 3.85% and the mortgage is at 3.25%, and I'm not sure we're ever going to get similar again in our lifetimes though I don't expect we're going to see 20% APR's ever again either. Also the market, I know we've talked about timing but I didn't sell prior to the December collapse but I'm up more than 35% since then... the graph is just at a an absurd angle over the last 90 days.

As a result there just seems to be better things I can do with the money, and while the debt is annoying and spending 5.5k a month just seems expensive to my admittedly middle class sensibilities, I'm having a hard time wrapping my head around trying to materially reduce the biggest portion of my expenses which is my debt payments.

Maybe that'll come if I just up and move out of Cali: more and more places seem to not care where you live as long as you come when they call (in just the past few days I've received two emails for 50% onsite 50% remote in massive metropolitan areas like Atlanta and Boston) and I never ever saw that previously so it's clear things are shifting at least in my industry and if I'm working 2-3 gigs it's not like I have time for a social life anyway and I can deal with worse weather... so Cali why?

Re: Average Spending by Americans (data based on age and expense category)

Thomas_Thumb — Thu, 21 Mar 2019 21:17:32 GMT

Just think if you had sold and bought back in after the drop.

I think the market is softening and another pull back is likely. Supposedly the Fed won't be raising rates any further. I would not expect loan rates to increase much, if any, near/mid term. I might sell some funds and put them in ladder CDs or municipal bonds in preparation for retirement late this year. Our medical & car insurance costs will drop some after DD finishes grad school in May and starts her career as a PA.

BTW: I lived in Atlanta from 1986 to 1997. Nice city back then but, it is too congested and has too much smog these days for my taste.

Re: Average Spending by Americans (data based on age and expense category)

pizza1 — Fri, 22 Mar 2019 13:08:37 GMT

mmmm, thats an interesting article! I may spend $10 one day, and $400 the next (that day was an exception as a Target run, and needed everything, lol).

My average "daily" spend is much less than my group, probably because I don't have that kind of extra money just lying around.

Re: Average Spending by Americans (data based on age and expense category)

Anonymous — Fri, 22 Mar 2019 22:03:37 GMT

Yeah... I naturally can’t have the kind of spending other Millenials do... my income only allows for around $50 a day.

And believe it or not, I am pretty happy there. In fact spending more than $32 a day average actually takes me looking for things to spend on.

Re: Average Spending by Americans (data based on age and expense category)

Revelate — Sat, 23 Mar 2019 05:14:31 GMT

TT: yeah I am starting to wonder on that too: all the negative maybes seem to be coming to fruition in some fashion which will drag on the market.

Pizza: well guess it isn’t the time to say I did get that additional gig.

Probably will be gone from the forums most of April just won’t have time to spend any time online... but if the market starts being strange I may just try to power my way out of debt.

I know I can’t hold it together long, technically it only lasts a month but there are so many projects they have and while it isn’t as tawdry as some places I have worked they aren’t going to get people beating down their doors for a job... but I get my weekends back after this one so maybe I will be able to stay sane... but more saliently if I were to ignore the arbitrage play and the mortgage interest deduction and nuke the debt from orbit so to speak, the 2700ish extra post tax that I could drop out of my monthly spending is starting to look more appealing.

Certainly on the auto loan a guaranteed 3.85% return might not be a bad deal, better than treasuries for no-risk investing.

Re: Average Spending by Americans (data based on age and expense category)

Anonymous — Sat, 23 Mar 2019 14:28:36 GMT

I run about 66$/day. I can do some extreme cutbacks and get down to 50$/day, but it is hard to maintain.

Re: Average Spending by Americans (data based on age and expense category)

Schwartzinator — Tue, 26 Mar 2019 23:16:56 GMT

Ugh. Great. Another article that confuses me on whether I am Gen Z or a Millennial. Thanks a lot. All joking aside, my rent is nearly equal to the entire category average for the under 25 crowd. Yikes...

Re: Average Spending by Americans (data based on age and expense category)

arkane — Thu, 28 Mar 2019 06:34:58 GMT

@Anonymous wrote:

For myself, I usually lived on one pay check a month and the other checks(s) are do whatever I want to money but, certainly not everyone can do that (income with retirement set asides was in the six figures annually). Will add that where a person lives geographically will affect monthly expenses greatly as you have shown living in southern California (sister lives in the New Port Beach area and it ain't cheap).

True confession is that I live near the edge of civilization and the cost of living for housing (House Payment $582, Auto $311, Property Taxes $70, Auto Ins $90, Property Ins $65 for a single family residence) and are lower than some areas of the country. However, I still stick to the fact that Baby Boomers do not have the resources to support the $49K reported as an annual expense or $135 a day total. This was a good read and I am glad you found it and brough it to us for consideration. Sure have me thinking on the subject!

(for proper context, I turn 31 in a few months)

Great minds think alike! I make maxing out my 401k my top priority, and I'm also lucky enough to have no expensive hobbies or any large expenses outside of rent (paid cash for my car) to make squeezing by on one paycheck a possibility (as long as I don't go crazy binging Indian buffets lol ).

Looking at my budgeting spreadsheets for the past 6 years, I'm getting these numbers:

2013: $95.54/day

2014: $86.59/day

2015: $74.56/day

2016: $82.17/day

2017: $119.55/day

2018: $95.55/day

2019: $69.32/day (up to March 27)

(rent went from $900/mo in 2013 to $1200/mo in 2016, yet somehow I managed to decrease my daily expenditure. Yeah I had to make some major cutbacks in certain areas, don't ask...)

The strictly mathematical average from 2013-2018 seem to center around $92.33/day. At this point, I just take pride in the fact that I can still manage to live more frugally than even Gen Z'er's during some of my "good" years, despite me living in the SF Bay Area aka one of the most expensive areas in the US.

Now to be fair, let me point out a few things from this table below:

Average Daily Spending by Americans 25-34 Years Old
Groceries	$10.89
Housing (Rent/Homeownership)	$34.78
Utilities	$8.89
Health Insurance	$6.19
Charitable Donations	$2.60
Education	$3.38
Gasoline	$5.52
Vehicle Insurance	$2.36
Eating Out	$9.36
Alcohol	$1.57
Entertainment	$7.24
Cellphone Service	$3.12
Clothing/Apparel	$5.59
Pets	$1.24
Overall	$208.77

1. I'm extremely fortunate to have done my tertiary education in Canada, and my entire college cost for my BS and MS (tuition+room & board) came out to $72k CAD. As a result, with scholarships + part-time jobs + handouts from parents + stipends/fellowships in grad school, I managed to graduate with 0 debt.

2. While rent in the Bay Area is certainly going to far exceed the national average of ~$1040/mo, I always live with roommates, thus after splitting the rent, it comes out to around $1250/mo, which isn't too bad.

3. The mild weather in the Bay Area means my utilities cost never exceeds $100/mo even during the coldest winter months, and can get as low as $45 during spring and fall. (and this cost is split with another person no less!!)

4. My employer provides me with an excellent HDHP, and I literally pay a dollar a day ($1.05 to be exact) for health insurance. Doubly good since my HSA is tax deductible and rolls over each year.

5. I ported my number to Google Voice, and use T-Mobile's $10 for 2GB data monthly plan for my phone, meaning I spend 33 cents/day for phone service.

5. Being the cheapskate that I am, charitable donations is a big fat $0.

6.I realized after driving 35 miles one way to work in 2017, that I just can't cope with hour long commutes. So my gas cost is probably $1.5/day at most.

7. I'm a lab rat, so I have no need or desire for expensive clothing. Thus my clothing cost is probably $1/day if even that.

Re: Average Spending by Americans (data based on age and expense category)

mitchblue — Sat, 30 Mar 2019 07:11:27 GMT

$202.48 my age in the article, times 30 = $6,074.4. That's a whole lot more than I even make in a month.

Re: Average Spending by Americans (data based on age and expense category)

Anonymous — Wed, 03 Apr 2019 18:55:34 GMT

I beat myself up about (what I perceive to be) overspending all of the time, but I'm actually living on $3k/month, $100/day which is just about half the average for my age range.

I was tracking every dollar for the longest time and making complicated budgets and it really didn't do anything to curb my spending. (Though the exercise did give me an idea of where a lot of my financial waste was.)

My 2019 budget consists of $1000/month to 401k, $1000/month to savings, $1000/month to bills, and $2000 to gas/food/tolls/entertainment/gym/parking/CC debt/whatever I want. (This may seem nuts, but I live in NYC.)

I am going to look a little harder at that last number in the near future, but for now I feel like I'm doing much better on this budget than my previous more detailed versions.

Re: Average Spending by Americans (data based on age and expense category)

Revelate — Thu, 04 Apr 2019 03:15:06 GMT

Yeah really the best benefit I found too in budgeting was where I was wasting money.

These days I know pretty well what I am spending for bills, and around the rest of my life... and then I just kick the remaining to either the brokerage account or towards accelerating a loan repayment.

It’s working for me currently but admittedly my income for me is just stupid right now and I wasn’t doing that badly before even.

It is taking it’s toll though, not getting enough downtime and it is starting to catch up to me... badly cranky right now and I am not executing that well anywhere, though I think the gig at the bank is now going to come to an end in 2 months and I can gut it out that long.

I was basically the only one telling my new executive not to go pick the fight with the security group about our site’s DDoS solution and even explained all the reasons why and off he goes tilting at windmills anyway.

I guess if a company was truly competent they wouldn’t need to hire me, meh.

Re: Average Spending by Americans (data based on age and expense category)

Anonymous — Thu, 04 Apr 2019 12:39:00 GMT

@Revelate wrote:
Yeah really the best benefit I found too in budgeting was where I was wasting money.

These days I know pretty well what I am spending for bills, and around the rest of my life... and then I just kick the remaining to either the brokerage account or towards accelerating a loan repayment.

It’s working for me currently but admittedly my income for me is just stupid right now and I wasn’t doing that badly before even.

It is taking it’s toll though, not getting enough downtime and it is starting to catch up to me... badly cranky right now and I am not executing that well anywhere, though I think the gig at the bank is now going to come to an end in 2 months and I can gut it out that long.

I was basically the only one telling my new executive not to go pick the fight with the security group about our site’s DDoS solution and even explained all the reasons why and off he goes tilting at windmills anyway.

I guess if a company was truly competent they wouldn’t need to hire me, meh.

... or got'ta love having a 'scape goat' ...