One of the first things you want to understand before start a business is your target audience…more precisely, their ability to spend.
With over $3.6 trillion in retail sales In the first half of 2023 alone, the American market is clearly showing its potential. So how much does the average American spend per year?
Average US spending per year
According to latest statistics, the average annual spending of a U.S. consumer in 2022 reached $72,967, or an average of approximately $6,080.58 per month. For more context, the average income (before taxes) was $94,003 ($7,833.58 per month).
This represents a 9% increase from 2020, during which the average consumer spending in the United States was $66,928. In comparison, the previous year, spending increased at a slightly faster rate of 9.1%, up from $61,332 in 2020.
From 2020 to 2022, U.S. consumers increased their average annual spending by a total of 19%, with an average annual growth rate of 9.1%.
It is worth noting that the rate of increase in average consumer spending in the United States over the past two years has been faster than the rate of increase in (pre-tax) income. From 2020 to 2022, the average American income increased from $84,352 to $94,003, an overall increase of 11.4% and an average annual growth rate of 5.6%.
Average consumer spending: main expenses
A closer look at the average annual spending of U.S. consumers shows that their biggest expense is about housing. In 2022, the typical U.S. consumer spent $24,298 on housing, which covered expenses related to owned and rented accommodations and accommodations spent on out-of-town trips. This represented a third (33.3%) of their average annual spending and an annual increase of 7.4%.
The second highest expense for American consumers was transportation. Of the average annual spending in 2022, $12,295 (totaling 16.9%) was spent on transportation. This included vehicle purchases, gasoline, public transportation and other related expenses.
The third biggest expense was food. The average U.S. consumer spent $9,343 on food in 2022, 12.7% more than in 2021. This was followed by personal insurance, pensions, and health care, on which consumers spent $8,742, respectively. and $5,850.
In total, U.S. consumers’ top three expenses in 2022, housing, transportation and food, totaled $45,936, or nearly two-thirds of 63% of their average annual spending.
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How much does the average person spend per year? FAQs
How much does a single person spend on average?
This question is difficult to answer with certainty because spending habits vary greatly from person to person. Factors such as income, lifestyle and location will all affect spending. According to the Bureau of Labor Statistics, the average single person spends approximately $72,967 annually on goods and services.
How much does the average person spend per day?
The average person spends about $199.91 per day, according to the Bureau of Labor Statistics. This figure includes spending on housing, food, transportation, entertainment, clothing, health care and other goods and services.
How much does the average person spend on clothes per year?
The average amount spent on clothing each year by the average person varies widely depending on factors such as age, gender and location. Generally speaking, in the United States, the average individual spends about $1,900 per year on clothing and related accessories.
What does the average American spend money on?
The average American spends money on housing (including rent/mortgage payments, maintenance and utilities), transportation (including gasoline, car payments and public transportation), food (groceries and restaurants), health care and entertainment (movies, sporting events). and leisure).
