How Americans Spend Their Money, Broken Out By Generation
When it comes to saving money, we’ve told you about how different generations of Americans are saving and building wealth.
We’ve also told you about the average amount of debt each generation of Americans has.
But how are different generations of Americans spending the money they bring it?
And what categories are they spending that money on?
If you’ve ever wondered how your spending habits stack up to others in your generation, The U.S. Bureau of Labor Statistics released a report that breaks down the spending habits of different generations. The report breaks down the segments of the economy where Americans put their hard-earned cash as of 2021, itemized by generation.
According to the report, the average American spent over $60,000 a year in 2021.
Here’s a breakout of the average amount spent by generation. Gen X spends the most, which tracks considering that people 42 – 57 years old tend to be in peak earning years. Millennials are right behind them, spending about $9,000 more than the $60k mean annually.
Total annual expenditures, by generation:
Boomers (1946 – 1964): $62,204
Generation X (1965 – 1980): $83,357
Millennials (1981 – 1996): $69,061
Generation Z (1996 – onwards): $41,636
There are some interesting observations about the data: Based on the data in the report, all generations are spending over 30% of their average income on housing, with Boomers ($21,273) and Millennials ($24,052) spending the most annually. The biggest segments across the board, regardless of generation, are housing, healthcare, and transportation – which means maybe avocado toast and coffee aren’t the only variables worth considering for why more people can’t afford to buy houses.
There’s also a ton of variance based on age and, presumably, life stage: Generation Z reports that it’s only spending $3871 on transportation a year, while Millennials and Generation X are spending well over $8000 a year.
Generation X reports spending over $10,000 a year on food, while Gen Z is spending a prudent $5,500. In fact, Gen Z is much better at saving money on entertainment, clothes, and general personal care/ cosmetics.
Millennials are the biggest boozehounds, spending an average of $629 a year on alcohol. Gen X, meanwhile, is spending the most on haircuts, nail salons, and other cosmetic products at $1331.
Below is a breakdown of this data from the Labor Department’s Consumer Expenditure Survey. Visual Capitalist has an excellent chart showing the data – we highly recommend you check it out.
It’s never been easier to set a budget with budget trackers like Mint.com and others out there.
Because it’s fun to compare your habits to others to get a sense of how you can make simple behavioral changes, this should give you a sense of how your own spending habits stack up against your peers.
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Housing
Boomers (1946 – 1964): $21,273
Generation X (1965 – 1980): $26,385
Millennials (1981 – 1996): $24,052
Generation Z (1996 – onwards): $15,449
Healthcare
Boomers (1946 – 1964): $9,327
Generation X (1965 – 1980): $13,956
Millennials (1981 – 1996): $11,052
Generation Z (1996 – onwards): $7,929
Food
Boomers (1946 – 1964): $7,651
Generation X (1965 – 1980): $11,656
Millennials (1981 – 1996): $9,249
Generation Z (1996 – onwards): $5,529
Transportation
Boomers (1946 – 1964): $6,594
Generation X (1965 – 1980): $10,388
Millennials (1981 – 1996): $8,483
Generation Z (1996 – onwards): $3,871
Cash Contributions
Boomers (1946 – 1964): $6,309
Generation X (1965 – 1980): $5,550
Millennials (1981 – 1996): $4,026
Generation Z (1996 – onwards): $2,097
Entertainment
Boomers (1946 – 1964): $3,476
Generation X (1965 – 1980): $4,694
Millennials (1981 – 1996): $3,457
Generation Z (1996 – onwards): $1,693
Personal Insurance and Pensions
Boomers (1946 – 1964): $2,876
Generation X (1965 – 1980): $2,747
Millennials (1981 – 1996): $2,135
Generation Z (1996 – onwards): $1,498
Apparel and services
Boomers (1946 – 1964): $916
Generation X (1965 – 1980): $2,249
Millennials (1981 – 1996): $1,008
Generation Z (1996 – onwards): $760
Personal Care Products and Services
Boomers (1946 – 1964): $732
Generation X (1965 – 1980): $1,331
Millennials (1981 – 1996): $934
Generation Z (1996 – onwards): $496
Education
Boomers (1946 – 1964): $703
Generation X (1965 – 1980): $956
Millennials (1981 – 1996): $777
Generation Z (1996 – onwards): $368
Alcoholic Beverages
Boomers (1946 – 1964): $561
Generation X (1965 – 1980): $601
Millennials (1981 – 1996): $629
Generation Z (1996 – onwards): $303
Reading
Boomers (1946 – 1964): $372
Generation X (1965 – 1980): $375
Millennials (1981 – 1996): $378
Generation Z (1996 – onwards): $210
Tobacco Products and Smoking Supplies
Boomers (1946 – 1964): $124
Generation X (1965 – 1980): $106
Millennials (1981 – 1996): $107
Generation Z (1996 – onwards): $79