The amount of money you spend over your lifetime is a fantastic question. With the average American having a life expectancy of 77 years, and annually we spend close to $60,000, over the course of a lifetime you can expect to spend around $4,620,000.
The Consumer Expenditure Surveys (CE) program data from the U.S. Bureau of Labor Statistics provides information on income, expenditures, and demographic characteristics of consumers in the United States.
According to the U.S. Bureau of Labor Statistics, expenditures for all consumers averaged $66,928 in 2021–a 9.1% increase from 2020. In the same period, incomes before taxes only increased by 3.7%, while the Consumer Price Index (CPI-U) rose 4.7%.
On average, those who make less than $42,000 annually ($20/hour) earn around $7 million over their career. In contrast, people with a high school diploma can expect about $114,000 yearly – slightly more than $24,000 more than those without a diploma.
Life typically consists of four stages:
1. Childhood (ages 0-23)
2. Young adulthood (ages 24-40)
3. Midlife (ages 41-60)
4. Elderhood (age 61 and up).
Use the current value of money to estimate how much money we spend. Look at the effect of inflation. Technically, inflation can be offset by the rate of return. Look at the amount of money in its current economic value.
Many factors contribute to the high cost of living:
- One of the most significant expenses is housing – The cost of buying or renting a home has been on the rise in recent years, and many families are struggling to keep up with the payments. A large chunk of people’s monthly incomes goes into paying for housing. Rent can set you back anywhere from $500 to upwards of $15,000, depending on the city you live and work in.
- Another major expense is childcare – With the high cost of daycare, many parents are forced to choose between working and staying home with their children.
- Other costs, such as food and clothing, have also risen faster than inflation. As a result, many families find it difficult to make ends meet.
While you can take some steps to reduce the cost of living, such as cutting back on unnecessary expenses, it is often not enough to make a significant difference.
As long as basic necessities continue to rise, life will remain expensive for most families.
According to the Centers for Disease Control and Prevention (CDC), the life expectancy for a baby born in the United States in 2018 is 78.6 years. However, this number varies by gender, with females typically living longer than males.
In 2018, the life expectancy for females was 81.1 years, while for males, it was 76.1 years.
Women’s life expectancy in the United States decreased by 0.8 years, from 79.9 in 2020 to 79.1 in 2021, while men’s life expectancy decreased even more rapidly by one full year, from 74.2 years in 2020 down to 73.2 just one year later in 2021.
In addition to the coronavirus, other causes of death that contributed to the decline in life expectancy from 2020 to 2021 include heart disease (4.1% of the decline), chronic liver disease and cirrhosis (3.0%), and suicide (2.1%).
While the gap between male and female life expectancy has narrowed in recent years, females still enjoy a longer lifespan on average.
There are many possible explanations for this difference, including biological factors and lifestyle choices. Regardless of the reasons, it is clear that gender plays a significant role in determining how long an individual can expect to live.
Consumer spending is the goods and services bought by or on behalf of people in the United States.
It’s no secret that Americans love to spend money. How much do we spend over the course of our lifetimes?
According to a recent study, the average American will spend approximately $2.4 million during their lifetime. That breaks down to an average of $10,000 per year.
However, this figure varies greatly depending on age and lifestyle. For example, younger Americans spend more on entertainment and travel, while older Americans typically have higher expenses related to healthcare and housing.
Many factors can affect an individual’s spending habits, such as income, debt levels, and family size.
According to the National Association of Home Builders, the average cost of a new home in 2020 was $363,700. This figure has risen to $371,200 in 2021 and $378,900 in 2022.
The main reason for the increase is the rising cost of land and labor. Additionally, the price of building materials is rising due to tariffs and other trade restrictions.
With that in mind, here are some of the most common predictions for the average cost of housing over the next two years.
Home prices are predicted to continue to rise, which could make it difficult for first-time buyers to enter the market.
Rental prices are also expected to rise over the next two years, although the rate of increase is expected to slow down somewhat. This means that renters must budget carefully to keep up with their payments.
As stated in the Bureau of Labor Statistics, food spending in the United States rose in 2019 to an average of $7,729 per household. That’s an increase of $286, or about 3.8%, from the previous year.
The data also showed that Americans spent more on food away from home than at home for the first time since the bureau began tracking the data in 1967. In 2020, food spending declined due to the coronavirus pandemic.
The USDA’s Economic Research Service estimates that households will spend an average of $1,461 less on food this year than in 2019. The decrease is due to various factors, including travel, eating out, and pantry stocking during lockdown periods.
While the pandemic has significantly impacted food spending, it has not completely eliminated the appetite for good eats.
According to the U.S. Energy Information Administration, the average monthly electricity bill in the United States was $127 in 2019. The average natural gas bill was $72, and propane bill was $61. The average monthly cost of all utilities (electricity, natural gas, propane, water, and sewer) was $355.
In 2020, the average monthly electricity bill rose to $132, and the natural gas bill is expected to rise to $74. The average monthly propane bill is expected to remain unchanged at $61. The average monthly cost of all utilities is expected to rise to $367. These figures do not include the cost of trash collection or recycling services.
Luckily, there are several ways to save money on your utility bills, such as using energy-efficient appliances and taking advantage of discounts and rebates. You can choose energy-efficient appliances and make sure your home is well insulated.
In the United States, the average cost of transportation has risen steadily in recent years. In 2019, the average American household spent $4,466 on transportation, up from $4,237 in 2018.
The vast majority of this increase was due to higher gasoline prices, which accounted for $2,379. Other major expenses included vehicle insurance ($1,170), vehicle maintenance and repairs ($898), and public transit fares ($741).
With the cost of living continuing to rise, transportation costs will likely continue to increase in the coming years. For American households, saving money on transportation will become increasingly important.
There are several ways to save money on transportation costs:
- Using public buses instead of driving.
- Carpool or ride-share when possible.
- Walking or biking instead of driving.
- Save money on gas by driving less.
The average cost of taxes across the United States varies depending on the state and local tax laws.
The average tax for 2019-2020 is $12,600 for a family of four, with the majority of that total going toward federal taxes. State and local taxes will add another $4,000 to the bill, for a total of over $16,000.
The tax system is designed to be progressive, meaning that those who earn more pay higher taxes.
The average cost of taxes may seem high, but it’s quite reasonable considering how much income you bring in. Get your paperwork in order, prepare to file, and don’t forget to deduct any eligible expenses.
In the United States, the average cost of healthcare has been rising steadily for years. In 2019, the average American household spent $5,607 on healthcare, up from $5,448 in 2018.
The vast majority of this increase was due to higher healthcare premiums, which accounted for $3,664. Other major expenses included hospital services ($1,109), prescription drugs ($973), and dental services ($798).
With the cost of living continuing to rise, healthcare costs will likely continue to increase in the coming years. For American households, saving money on healthcare will become increasingly important.
There are several ways to save money on healthcare costs:
- Get health insurance through your job or the government.
- Use generic drugs instead of brand-name drugs.
- Save money by using preventive services like vaccinations, screenings, and living a healthy lifestyle.
The cost of a college education in the United States has been rising steadily for years.
According to the National Center for Education Statistics, the average tuition and fees for a four-year degree program at a public university were just over $9,000 in the fall of 2018. This represents a significant increase from just a few years earlier when the average cost was less than $6,000.
For private universities, the average cost is higher, at nearly $33,000 per year. These costs can be a challenge for students and their families to afford. There are some options available to help make college more affordable:
- Many colleges and universities offer financial aid packages that can help reduce the cost of tuition.
- There are many scholarships and grants that can also help offset the cost of a college education.
In a recent study, the average American spends approximately $2,500 on entertainment each year.
This figure includes expenses such as movie tickets, restaurant meals, and live event tickets. It does not, however, include the cost of subscription services such as Netflix or Hulu.
When all forms of entertainment are considered, the average American spends close to $3,000 per year on entertainment.
Some factors contribute to this high level of spending.
- Entertainment options have become more plentiful and accessible in recent years. There are now more movies, TV shows, and live events to choose from than ever before.
- The cost of individual entertainment options has also increased. Movie and live event tickets have risen considerably over the last decade.
- Americans have more disposable income than they did in the past. As wages have increased and unemployment has fallen, people have more money to spend on non-essential items like entertainment.
Despite the high cost of entertainment, it remains a significant part of American life. For many people, it is a key source of enjoyment and relaxation. It can also be a great way to bond with friends and family.
In an increasingly busy world, it is no wonder so many people are willing to pay a premium for quality entertainment options.
In 2021, the average American spent just over $60,000 a year. Where does all their money go? Unsurprisingly, spending habits vary wildly depending on age.
For example, according to data from the Bureau of Labor Statistics, Americans in their 20s spend more money on nights out and eating at restaurants than any other age group.
Range Average Annual Expenditure (2021)
1945 or earlier
1946 to 1964
1965 to 1980
1981 to 1996
1997 or later
In the United States, the average person’s spending habits vary widely depending on age, income, and location factors. For example, transportation and housing typically account for the largest portion of a person’s expenses.
Other major categories include food, healthcare, and entertainment. Interestingly, the amount of money spent on clothing has been declining in recent years, while spending on experiences such as travel and dining out has been on the rise. This suggests that people are increasingly valuing memories over material possessions.
Everyone has unique spending priorities, but these patterns give us a rough idea of where most people’s money goes.
When the healthcare system has been evolving at an unprecedented rate, it’s no surprise that many elderly individuals live much longer than generations from any other period in our country’s history.
This increased longevity indicates your retirement years could span 30 or more — some people might even spend their entire lives outside of work.
The secrets to making your money last are actually quite simple:
- Save early and often.
- Invest in a diversified mix of assets.
- Don’t let emotions get in the way of your financial decision-making.
Following these three simple rules ensures that your money will last as long as needed.
- The first rule is to start saving early. Even if you only save a small amount each month, it will add up over time. And the earlier you start saving, the more time your money will have to compound and grow.
- The second rule is to invest in a diversified mix of assets. This means putting your money into different types of investments, such as stocks, bonds, and real estate. By diversifying your portfolio, you’ll minimize your risk and maximize your potential for growth.
- The third rule is to resist the temptation to make emotional decisions about your money. When it comes to investing, stay disciplined and focused on your long-term goals. That means avoiding impulsive decisions that could jeopardize your financial security.
You can make your money last a lifetime by following these simple rules. So start saving today, and you’ll be on your way to a secure financial future.
The average person in the United States spends around $60,000 a year. This spending varies depending on factors such as age and location, but some common trends can be seen. For example, transportation and housing are the biggest expenses, while clothing has been declining in recent years.
To make your money last a lifetime, start saving early, invest in a diversified mix of assets, and resist making emotional decisions about your finances. These rules will cover your money throughout retirement.