Visualizing How Americans Spend Their Money

Today, consumer spending represents 68% of U.S. GDP, with much of this used for housing, transportation, and healthcare costs.

More than ever, Americans are using debt and credit cards to fund these purchases. In the second half of 2024, household debt hit a record $17.9 trillion. At the same time, credit card debt surpassed a historic $1 trillion, climbing by 8.3% over the time period.

This graphic, via Visual Capitalist’s Dorothy Neufeld, shows the average annual expenditures of Americans, based on data from the Consumer Expenditures Survey 2023 by the Bureau of Labor Statistics.

Breaking Down the Annual Expenditures of Americans

Below, we show the average annual spending patterns of Americans in 2023, using the latest available data:

Nearly half of American consumer spending goes toward housing and transportation, with housing costs increasing 12.4% since 2021, slightly outpacing inflation.

Even as U.S. home prices hit record levels, debt service payments as a percentage of disposable income stood below the 2007-2008 peak. Part of this is due to rising salaries, as average annual incomes jumped from $87,432 to $101,805 in two years.

For food, Americans spend approximately $10,000 annually on groceries and dining out, growing by 20.5% since 2021. As food price inflation has surged above both wage inflation and overall inflation, select food and beverage retailers surveyed by the Census saw operating profits increase 79% between 2019 and 2023.

Overall, spending on food away from home outpaced food at home expenditures in 2023, increasing by 8.1% and 6.1%, respectively.

Meanwhile, healthcare spending rose 5.3% over the year, reaching $6,159 on average. As a whole, healthcare spending in 2023 reached $4.8 trillion, with Americans spending more on healthcare than any other G20 nation.

Looking ahead, healthcare costs are projected to rise up to 8% in 2025, driven by demand for costly GPL-1 drugs and an aging population. Adding to this, many common prescription drugs are forecast to rise in price this year.

Finally, as one of the fastest-rising categories, educational spending jumped 24% in 2023. In particular, elementary and high school tuition soared 39.2% while school supplies followed closely behind at 38.6%.

To learn more about this topic from a budgeting perspective, check out this graphic on the average monthly household budget in America.