The average monthly expenses for a family of four in the United States vary significantly depending on location, lifestyle, income, and personal choices. Still, based on statistical data, the average family of 4 will spend between 7,000 to 8,000 per month on household expenses.
The average monthly expenses for a family of four range from $7,333 to $8,595 (depending on the ages of your kids).
According to the Dave Ramsey Team
The Bureau of Labor Statistics also says that the average monthly expenses for an American household add up to about $5,577. That equals $66,928 annually, close to the average annual income of $78,743 after taxes.
The Bureau of Labor Statistics
Below is a breakdown of the general estimates composing monthly expenses for an average household of 2 or 3, according to the Bureau of Labor Statistics. Monthly Expenses as evaluated by the Bureau of Labor Statistics. (These are all averages, as this range will depend on which area of the United States you live) -The annual inflation rate for all items as of March 2023 was 5%.20 But some expenses went up more than 5%. The cost of food was up 8.5%. Shelter (aka housing) was up 8.2%. Energy bills went up by 9.2%. You must spend more money to keep your same standard of living.
This calculation was evaluated on a family of 2 to 3. For a family of 4 to 5, double the amounts.
| Categories | The Bureau of Labor Statistics before inflation | Inflation Impact | Monthly Budget Averages Before Inflation with Rounding | Inflation | Monthly Budget Averages after Inflation 2023 | Monthly Budget Averages after Inflation with Rounding |
| Housing | $1,885.00 | 9.20% | $2,000.00 | $184.00 | $2,184.00 | $2,500.00 |
| Food | $691.00 | 8.50% | $700.00 | $59.50 | $759.50 | $800.00 |
| Transportation | $913.00 | 5.00% | $1,000.00 | $50.00 | $1,050.00 | $1,000.00 |
| Healthcare | $454.00 | 5.00% | $500.00 | $25.00 | $525.00 | $600.00 |
| Childcare/Education | $102.00 | 5.00% | $200.00 | $10.00 | $210.00 | $250.00 |
| Other Expense | $878.00 | 5.00% | $900.00 | $45.00 | $945.00 | $1,000.00 |
| Totals: | $4,923.00 | 37.70% | $5,300.00 | $373.50 | $5,673.50 | $6,150.00 |
Inflation has affected many of us negatively, and balancing the budget with the family earnings can be difficult and frustrating. Below are some tools available from Amazon that can help with this process and help your family get on track more quickly.
More details on the categories and the expense breakdowns are listed below.
- Housing: Housing costs, including rent or mortgage payments, property taxes, and utilities, can vary depending on the region. On average, housing expenses may range from $1,000 to $3,000 or more per month. Housing costs can vary based on factors such as the size of the home, location, and whether the family rents or owns their residence. Housing expenses tend to be higher in urban areas or regions with an inflated cost of living. Mortgage or rent payments are typically the most sizable part of housing costs. It includes property taxes, homeowners’ insurance, repairs, and gas and electric bills. “To avoid being house poor (aka spending too much money on housing), keep your rent or mortgage (plus insurance, taxes, and any HOA fees) at no more than 25% of your take-home pay.” (Dave Ramsey Team)
- Food: The cost of groceries and dining out can also vary based on dietary preferences and location. A rough estimate for a family of four’s monthly food expenses could range from $500 to $1,000. The cost of food depends on several factors, including the family’s dietary preferences, location, and whether they eat out frequently. Families that cook at home and buy groceries spend less than those who dine out regularly. The number of family members and their ages can also influence food costs. Start meal planning if you want to cut your food budget at home and in restaurants. When you plan your meals before you head to the grocery store, you’ll be more likely to buy only the stuff you need—and skip impulse buys.
- Transportation: Transportation expenses include costs related to owning and operating a vehicle, such as car payments, fuel, insurance, maintenance, and repairs. Monthly transportation costs can vary significantly depending on commuting distance and vehicle ownership. An estimate might range from $300 to $800 or more. Public transportation costs like bus or subway fares may also be relevant. Families living in areas with good public transportation infrastructure may have lower transportation costs than those relying solely on private vehicles.
- Healthcare: Health insurance premiums, medical expenses, and out-of-pocket costs can vary depending on the coverage and health needs of the family. However, it is common for families to spend a few hundred dollars per month on healthcare-related expenses. Families with employer-sponsored health insurance may have a part of their premium paid by their employer, while those without employer coverage might need to buy insurance independently. Out-of-pocket costs for doctor visits, medications, and medical treatments can also contribute to healthcare expenses. You cannot lower healthcare costs very much by cutting back, but there are other ways to save money on health insurance, like staying in-network when you can or taking advantage of a Health Savings Account.
- Childcare/Education: Childcare costs can vary based on the type of care (in-home care, daycare center, nanny), location, and the child’s age. Childcare expenses can range from $500 to $2,000 or more per month, depending on the type of care and location. Childcare and education costs are significant for families with young children. Private school tuition fees can be a considerable expense if the family opts for private education.
- Other expenses: This category encompasses various discretionary expenses such as clothing, personal care items, entertainment, dining out, hobbies, vacations, and savings. These expenses can vary significantly based on individual preferences and circumstances. An estimate might range from $300 to $800 or more. The amount spent on these categories can vary considerably based on personal and family needs and financial circumstances.
Remember, these figures are rough estimates, and your actual expenses may be higher or lower depending on your specific circumstances. Additionally, economic conditions and inflation can impact the overall cost of living, so it’s essential to consider that these figures may change over time. It is important to note that these estimates are subject to change based on factors such as inflation, economic conditions, and individual choices. Utilizing budgeting tools and tracking expenses can help families better understand their specific spending patterns and adjust accordingly.
References:
What Are the Average American’s Monthly Expenses? – Ramsey. https://www.ramseysolutions.com/budgeting/american-average-monthly-expenses
U.S. Bureau of Labor Statistics. (2022, September 8). Consumer Expenditures–2021 – 2021 A01 results. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/cesan.nr0.htm