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Average Family Budget (Infographic) from Bank of America Creating a family budget can be daunting. Start by exploring this typical family budget infographic to see how the average family spends their money. How does your budget compare to a typical family budget? Bank of America average family budget, typical family budget

What is a typical American budget? It depends- the more we have, the more we spend. The biggest spike in spending comes when our earnings make their first big jump: after we turn 25, when we tend to graduate college and gain traction in our careers. But does age affect our spending in other ways? With some help from United States Bureau of Labor Statistics, we'll take a look at how different age brackets spend. How does your own budget compare?

$2,531monthly spending
Under 25 age group
Late Millennials
Paying down debt
From student loans to ramen noodles, they are defining themselves while navigating the most frugal time in their lives.

$4,007 monthly spending
25-34 age group
Millennials
Building savings
Globally oriented with a strong sense of self and social justice, they grew up in the post-9/11 era with the Internet in their pockets.

$4,899 monthly spending
35-44 age group
Generation X
Earning & investing
They ushered in the information age, weathered financial setbacks, and are now in the thick of the marriage-and-mortgage years.

$5,044 monthly spending
45-54 age group
Late Boomers
Planning for retirement
Made solid market gains, bought homes earlier (and cheaper) than Gen X, and have more to spend on “nice-to-haves.”

$4,658 monthly spending
55-64 age group
Baby Boomers
Downsizing expenses
Survived the 60s and remember what life was like before the Internet, now their spending tends to slow as they ready for retirement.

$3,450 monthly spending
65+ age group
The Senior Set
Living on savings
This mostly retired age group extends all the way from the earliest Baby Boomers to the last of World War II’s “GI Generation.

Where does the money go?

Monthly food budget
Americans eat as well as we can possibly afford to—food spending grows and shrinks along with our income.

>25, $392 / month
25-34, $516 / month
35-44, $660 / month
45-54, $660 / month
55-64, $559 / month
65+, $433 / month

Monthly transportation budget
Costs jump for 25-34-year-olds who leave campus and buy cars. Many also marry, move to the suburbs and commute farther.

>25, $473 / month
25-34, $765 / month
35-44, $877 / month
45-54, $899 / month
55-64, $790 / month
65+, $563 / month

Monthly housing budget
As 25-34-year-olds trade up for better apartments or mortgage payments, their spending rises. People 45+ may have bought homes years earlier, lowering their costs.

>25, $863 / month
25-34, $1,434 / month
35-44, $1,718 / month
45-54, $1,583 / month
55-64, $1,495 / month
65+, $1,184 / month

Monthly healthcare budget
We tend to require more medical care and prescription drugs as we age, so healthcare spending increases even while our income declines. No wonder 40% of Americans worry about the steadily rising cost of healthcare and insurance.1

>25, $79 / month
25-34, $182 / month
35-44, $266 / month
45-54, $317 / month
55-64, $365 / month
65+, $422 / month

Monthly education budget
College costs hit students under 25, while parents aged 45-54 start feeling the tuition pinch again when their own kids head off to school.

>25, $171 / month
25-34, $85 / month
35-44, $75 / month
45-54, $164 / month
55-64, $103 / month
65+, $27 / month

Monthly entertainment budget
As with many other discretionary expenses, Late Boomers spend the most. Many have worked hard all their lives, and now they’re enjoying themselves.

>25, $104 / month
25-34, $185 / month
35-44, $247 / month
45-54, $256 / month
55-64, $221 / month
65+, $169 / month

Monthly pensions & personal insurance budget
Spending on retirement preparation more than doubles between the under 25 and the 25-34 categories, and steady increases continue until the pre-retirement Baby Boomer category (54-64).

>25, $184/ month
25-34, $442 / month
35-44, $590 / month
45-54, $639 / month
55-64, $586 / month
65+, $200 / month

How Families Budget Creating a family budget can be daunting. Start by exploring this typical family budget infographic to see how the average family spends their money.

How American household budgets vary

What is a typical American budget? It depends- the more we have, the more we spend. The biggest spike in spending comes when our earnings make their first big jump: after we turn 25, when we tend to graduate college and gain traction in our careers. But does age affect our spending in other ways? With some help from United States Bureau of Labor Statistics, we'll take a look at how different age brackets spend. How does your own budget compare?

Infographic: How American families budget Show infographic Text Version

Monthly budgets: the big picture

$2,531 monthly spending
Under 25 age group
Late Millennials
Paying down debt
From student loans to ramen noodles, they are defining themselves while navigating the most frugal time in their lives.

$4,007 monthly spending
25-34 age group
Millennials
Building savings
Globally oriented with a strong sense of self and social justice, they grew up in the post-9/11 era with the Internet in their pockets.

$4,899 monthly spending
35-44 age group
Generation X
Earning & investing
They ushered in the information age, weathered financial setbacks, and are now in the thick of the marriage-and-mortgage years.

$5,044 monthly spending
45-54 age group
Late Boomers
Planning for retirement
Made solid market gains, bought homes earlier (and cheaper) than Gen X, and have more to spend on “nice-to-haves.”

$4,658 monthly spending
55-64 age group
Baby Boomers
Downsizing expenses
Survived the 60s and remember what life was like before the Internet, now their spending tends to slow as they ready for retirement.

$3,450 monthly spending
65+ age group
The Senior Set
Living on savings
This mostly retired age group extends all the way from the earliest Baby Boomers to the last of World War II’s “GI Generation.

Where does the money go?

Monthly food budget
Americans eat as well as we can possibly afford to—food spending grows and shrinks along with our income.

>25, $392 / month
25-34, $516 / month
35-44, $660 / month
45-54, $660 / month
55-64, $559 / month
65+, $433 / month

Monthly transportation budget
Costs jump for 25-34-year-olds who leave campus and buy cars. Many also marry, move to the suburbs and commute farther.

>25, $473 / month
25-34, $765 / month
35-44, $877 / month
45-54, $899 / month
55-64, $790 / month
65+, $563 / month

Monthly housing budget
As 25-34-year-olds trade up for better apartments or mortgage payments, their spending rises. People 45+ may have bought homes years earlier, lowering their costs.

>25, $863 / month
25-34, $1,434 / month
35-44, $1,718 / month
45-54, $1,583 / month
55-64, $1,495 / month
65+, $1,184 / month

Monthly healthcare budget
We tend to require more medical care and prescription drugs as we age, so healthcare spending increases even while our income declines. No wonder 40% of Americans worry about the steadily rising cost of healthcare and insurance.1

>25, $79 / month
25-34, $182 / month
35-44, $266 / month
45-54, $317 / month
55-64, $365 / month
65+, $422 / month

Monthly education budget
College costs hit students under 25, while parents aged 45-54 start feeling the tuition pinch again when their own kids head off to school.

>25, $171 / month
25-34, $85 / month
35-44, $75 / month
45-54, $164 / month
55-64, $103 / month
65+, $27 / month

Monthly entertainment budget
As with many other discretionary expenses, Late Boomers spend the most. Many have worked hard all their lives, and now they’re enjoying themselves.

>25, $104 / month
25-34, $185 / month
35-44, $247 / month
45-54, $256 / month
55-64, $221 / month
65+, $169 / month

Monthly pensions & personal insurance budget
Spending on retirement preparation more than doubles between the under 25 and the 25-34 categories, and steady increases continue until the pre-retirement Baby Boomer category (54-64).

>25, $184/ month
25-34, $442 / month
35-44, $590 / month
45-54, $639 / month
55-64, $586 / month
65+, $200 / month

Today will be tomorrow before you know it. People are living longer, fuller lives than ever before, so make sure you’re prepared for whatever the future may hold. Schedule a one-on-one meeting today.

 

Source: 2013 United States Bureau of Labor Statistics
1Consumers and the Economic Outlook – US – February 2014 – Attitudes toward Personal Finances

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