Find Out If You’re Overpaying For Basic Necessities And More.
While your spending is tailored to your individual earnings and priorities, it doesn’t hurt to use the average American as a financial gauge. You might be proud of your uncanny ability to find hidden gems at thrift shops or take advantage of the steepest retail discounts, saving heaps of money on clothing in the process. However, if you’re also spending significantly more than the rest of America on things like education, child care or car insurance, you could be falling behind in terms of reaching your financial goals.
We rounded up 25 common expenses and used data from the U.S. Census Bureau, the National Retail Federation and more to find out how much consumers typically spend on everyday items. The different expenses ranged from holiday gifts and subscription services to charitable donations and mortgage payments. In some cases, the figures were shocking. For example, Americans spend more on coffee than they do on their auto insurance — in fact, caffeine consumption accounts for over $1,000 in the average consumer’s expenditures. The final coffee bill is startlingly close to how much people spend on their cellphone services in a given year.
If you think that dropping $1,100 on coffee every year is perfectly acceptable, you should consider cutting back in other areas to fuel your caffeine habit without hurting the rest of your budget. While it’s difficult to bring down your rent or mortgage payments on your own, you might find that tackling controllable expenses — like dining out and entertainment — can help you save hundreds, if not thousands, of dollars annually.
- HOLIDAY FOOD AND DECORATIONS
What the average American spends annually: $227
- SUBSCRIPTION SERVICES
What the average American spends annually: $237.33
- ALCOHOL
What the average American spends annually: $583
- HOLIDAY GIFTS
What the average American spends annually: $659
- PETS
What the average American spends annually: $662
- ENTERTAINMENT FEES AND ADMISSION
What the average American spends annually: $766
- PUBLIC TRANSPORTATION
What the average American spends annually: $818
- VEHICLE MAINTENANCE AND REPAIRS
What the average American spends annually: $890
- VEHICLE INSURANCE
What the average American spends annually: $976
- MISCELLANEOUS
What the average American spends annually: $993
- COFFEE
What the average American spends annually: $1,100
- CELLPHONE SERVICES
What the average American spends annually: $1,188
- EDUCATION
What the average American spends annually: $1,407
- HEALTH AND FITNESS (INCLUDING GYM MEMBERSHIPS)
What the average American spends annually: $1,860
- CLOTHING AND APPAREL
What the average American spends annually: $1,866
- CHARITABLE DONATIONS
What the average American spends annually: $1,888
- GASOLINE
What the average American spends annually: $2,109
- HEALTH INSURANCE
What the average American spends annually: $3,405
- DINING OUT
What the average American spends annually: $3,459
- UTILITIES
What the average American spends annually: $4,049
- GROCERIES
What the average American spends annually: $4,464
- RETIREMENT ACCOUNT CONTRIBUTIONS
What the average American spends annually: $6,831
- CHILD CARE
What the average American spends annually: $9,006
- RENT
What the average American spends annually: $12,696
- MORTGAGE PAYMENTS
What the average American spends annually: $18,792