You have set up your budget, track your spending, and know where every dollar from your paycheck goes – or close to it. But did you ever wonder how your spending stacks up against the average?
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Here’s what you need to know about how much the average 4-person family spends monthly, according to 2022 data from the Bureau of Labor Statistics.
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Average Expenses for a Family of Four
According to the most recent data, U.S. households that consist of four people spent an average of $8,640 per month in 2022. In 2021, the average four-person household spent $7749 per month. This works out to average annual expenditures of $101,514 in 2022, up from $92,989 in 2021.
Average Expenses for a Single Person
If you’re only supporting yourself, you will naturally spend less. The average monthly expenses for one household were $3,693 in 2022, or $44,312 for the year. This is an increase from 2021, when the average single-person household spent $3,405 per month or $40,859 per year.
Where the Money Goes
Not surprisingly, the largest single expense for American households is housing. The average four-person household spent $32,048 on housing in 2022, or $2671 per month.
Transportation is the second largest expense, and the average four-person household spent $18,714 to get around in 2022. That’s $1559 per month.
The average four-person household spent $14,305 in 2022 on what the Bureau of Labor Statistics calls ‘personal insurance and pensions.’ This includes payments to social security and contributions to retirement savings plans. This works out to $1,192 per month, the third largest chunk of the budget.
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The fourth largest expense is food, which costs the average American household of four $1,088 per month, or $13,055 per year.
The average four-person household spent $7,288 on healthcare in 2022, or $607 per month.
Entertainment costs an average of $4,752 for a four-person household in 2022, or $396 per month.
In nearly every category – entertainment being the sole outlier – expenses were higher in 2022 than in 2021. Given that inflation appears to have peaked in 2022, the increases can be expected to moderate over the next few years.
How does your budget stack up?
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This article originally appeared on GOBankingRates.com: Budget Planning: How Much the Average 4-Person Family Spends Monthly