Every family is different and so are their spending habits. It is impossible to point out how exactly a family spends in a month. The expenditure depends on various factors like age, kind of job you are doing, the kind of lifestyle you live, how much debt you have and whether you live alone or with a family.

Knowing what an average American spends on their monthly expenses can help people plan their finances accordingly. The family budget can be broken down on the basis of age. It’s only natural that the more money you have the more you spend.

People who are just starting out will definitely spend less than those who are now established in their career and life. From students to retired old people, everyone has an average family budget. In this article, we will have a look at what an average American typically spend in a month.

What is a family Budget?

Everyone speaks about the family budget, but what exactly is it.

It is a statement or plan for how the family income is spent on various things like food, utilities, clothes, luxuries, traveling, bills and other things. It is usually planned monthly for a family which is dependent on the paycheque every month.

Having a family budget every month help in keeping everything in order. It is one of the important parts of personal finances as well. It does not mean that you must have a family as per to have a budget for it. A single person living alone can also have a household budget.

How does a young American Spend?

Young people under the age of 25 are just starting out and naturally have a budget to stick to. They are fresh out of college or starting out on their own and have to spend wisely if they want to sustain themselves.

The average monthly spending of people in this age group is between $2733 and $3000. They pay no more than $950 on their rent and their transportation expenditure is somewhere between $527 and $600. They are fairly frugal and seem to spend less than the people who are older. Majority of their earning is dedicated to paying their education loans. That is where they are spending the most.

Millennial Budget

People in this category are aged between 25 and 30 and are already settled in their jobs. They have a very comfortable earning by this time and their expenditure is naturally more than the people who are under the age of 25 and just starting out.

The average monthly expenditure of millennial is $4,339 or more but not more than $5000. They spend less on education as they are already halfway through paying off the loans. This is the time where they start paying off most of the debts and start saving for the future, especially towards their retirement saving accounts.

Adults with marriage and family

The family budget for this age group is obviously higher since they are mostly married and have children. Majority of their income goes into household expenses and this is the time they buy a house, so part of the income goes into paying the mortgages.

The family budget for the people between the age of 35 and 40 is $5445. For families who have children the expenditure on food, transportation and education are obviously higher. If both the parents are working they have a comfortable income and can spend more.

Middle Age

Between the age of 45 and 50, people start spending more on transportation and education of their children. The average family budget for this age group is around $6000. The expenditure on health also goes higher for this age group. The expenses on food and other household needs may go down as the children go off to colleges or start working.

This age group is again more focussed on saving money for their retirement and old age.

Retirement Age Group

People usually retire between the age of 55 and 65. The average cost of living comes down to $4898. As they retire their income comes down drastically. But, they don’t travel for work anymore so their cost of transportation and food naturally goes down as well. The health cost, however, goes up as the age progress.

Old Age Family Budget

People in their 60s fall under this category. They have now retired, travel less, and have to spend less on food and housing as well. This is the time they enjoy the hard earned money they saved for retirements. Mortgages, debts, and loans are paid off and they usually do not have any financial burden. The only big expense for them is, of course, the health care.


Knowing what an average American spends at different ages is helpful in designing your monthly family budget. No matter what your budget is or what age you are in, planning ahead is always a great idea. Having a clear-cut financial goal helps in making sound decisions.