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Understanding where Americans spend their money is one of the most practical ways to gauge the true cost of living in the United States. Figures from the Consumer Expenditure Survey, published by the U.S. Bureau of Labor Statistics, reveal a consistent pattern of priorities: housing, transportation, food, and healthcare absorb the largest share of household income. For anyone planning to study, work, or establish permanent residency in the country, reading this data is the first step toward building a realistic budget and avoiding surprises during that first year of adjustment.
More than the absolute figures, what matters to the future resident is the proportional structure of spending. Knowing that nearly one-third of the average annual income goes toward housing changes the logic of comparison with other countries and helps calibrate expectations about salaries, standard of living, and saving capacity.
The average household budget breakdown
According to the BLS’s most recent survey, average annual household spending in the United States was approximately $77,280 in the reference base year. Five categories account for roughly 70% of that total and set the pace for the household budget.
- Housing: $25,436 (32.9%)
- Transportation: $13,174 (17.0%)
- Food: $9,985 (12.9%)
- Personal insurance and pensions: $9,556 (12.4%)
- Healthcare: $6,159 (8.0%)
The remainder is spread across entertainment, apparel, charitable contributions, education, personal care, and smaller items such as reading materials, tobacco, and alcohol. The first takeaway from these numbers is clear: housing and transportation consume nearly half of the average budget before food and health coverage even enter the picture.
Why housing weighs so heavily
The housing category includes rent, mortgage payments, property taxes, homeowner’s insurance, HOA fees where applicable, and utility bills such as electricity, gas, water, and internet. Even outright homeowners remain exposed to property taxes and maintenance — two items that often catch newcomers off guard, especially those accustomed to lower real estate tax burdens elsewhere.
Costs vary dramatically by region. In expensive metros such as New York, San Francisco, Boston, Los Angeles, and Washington, D.C., average rents for one-bedroom units frequently exceed $2,500 per month. In markets like Texas, Florida, North Carolina, or Ohio, it is still possible to find housing under $1,500, though the trade-off is less public transit coverage and greater car dependency.
Transportation: the cost of being a car-dependent country
Transportation is the only category that comes close to housing in cost. The aggregate figures reflect a structural reality: outside a handful of metro areas with established subway systems, a car is practically mandatory. The transportation budget typically includes the vehicle purchase or financing, depreciation, fuel, state-required insurance, maintenance, and tolls and parking fees.
- The average transaction price for a new car in the U.S. remained above $47,000 in 2024, according to Kelley Blue Book / Cox Automotive market data.
- Gasoline prices fluctuate by region, but the national average reported by the U.S. Energy Information Administration ranged between $3.00 and $3.50 throughout 2024 and into early 2025.
- Auto insurance typically runs between $1,500 and $3,000 per year, depending on the state, the driver’s age, and driving history.
Anyone moving to cities like New York, Chicago, or San Francisco can dramatically cut this expense by going car-free. For most of the country, however, budgeting transportation as a significant fixed cost is non-negotiable.
Food: groceries and dining out
Average food spending is split between grocery stores and restaurants. Groceries account for the larger share, but eating out is a deeply rooted habit: fast-casual chains, fast food, and food delivery are woven into everyday life at a far higher rate than in many other countries.
Between 2023 and 2024, food away from home rose faster than food prepared at home, reflecting both service-sector inflation and a behavioral shift — especially among younger consumers. For newcomers, it’s worth calibrating expectations: a typical meal at a casual dining chain runs between $15 and $25 per person, before beverages, tax, and an 18%–22% tip.
Healthcare: the most unpredictable item
Healthcare deserves its own section because the American system is predominantly private and insurance-based, with deductibles, copayments, and variable coverage. The average spending captured by the BLS is approximately $6,159 per household, but that figure masks wide variation.
- Health insurance premiums account for the bulk of out-of-pocket spending and can exceed $8,000 annually for a family enrolled in an employer-sponsored plan — on top of the employer’s separate contribution.
- Deductibles on individual HDHP plans typically exceed $1,600 and can reach $8,000 per family before full coverage kicks in.
- Copayments and prescription costs add recurring expenses, though these are partially offset by tax-advantaged accounts such as FSAs and HSAs.
Spending rises progressively with age. For immigrants who arrive young, the top priority should be ensuring uninterrupted coverage from day one — a single uninsured hospitalization can wipe out years of savings.
Personal insurance and retirement
Americans contribute to federal programs through Social Security and Medicare, deducted directly from their paychecks. On top of that, they build private retirement savings through 401(k) plans and IRAs, along with life insurance and other personal insurance policies. This category, representing roughly 12.4% of average spending, tends to grow alongside income and career stability.
For anyone planning to remain in the U.S. for decades, understanding this system matters as much as the gross salary: employers frequently offer a match of up to 6% on 401(k) contributions — equivalent to a direct pay increase when captured in full.
Education on the rise
Education recorded the steepest percentage increase in recent surveys, reflecting tuition hikes at every level. For immigrants weighing whether to study in the U.S., current cost benchmarks are worth anchoring:
- Public universities for out-of-state students typically charge more than $30,000 per year in tuition.
- Private universities frequently exceed $50,000 per year in tuition, not counting housing and food.
- Graduate programs in fields such as MBA and Law surpass $70,000 per year at competitive institutions.
This cost also affects long-term residents: families with school-age children must weigh private school tuition or the impact of local property taxes on the quality of the public school assigned to their district.
How spending changes across a lifetime
The average budget is not static. American households hit peak spending between ages 45 and 54, the bracket when mortgage payments, two cars, school-age children, and higher healthcare premiums all converge. After 55, spending begins to ease — housing and transportation costs fall as mortgages are paid off — but healthcare costs continue to climb.
- Under 25: approximately $46,000 per year.
- 25 to 34: approximately $67,000.
- 35 to 44: approximately $86,000.
- 45 to 54: peak of around $91,000.
- 65 and older: gradual decline to the $53,000–$60,000 range.
What this means for newcomers
For Brazilians and Latin Americans planning to live in the U.S., three practical conclusions emerge. The first is that income and cost move together: average salaries are higher, but so are fixed expenses. Without understanding the proportional spending structure, comparing gross figures leads to flawed decisions.
The second is that the choice of city matters as much as the choice of visa. Accepting an offer in San Francisco at a salary 30% higher may leave you with less take-home pay at the end of the month than an equivalent position in Austin or Raleigh.
The third is that healthcare and retirement planning must be part of the plan from day one. Uninterrupted health coverage, maximizing 401(k) contributions to capture the employer match, and understanding the federal and state tax systems are just as decisive for quality of life as the visa category that opened the door. In short: those who arrive with a clear financial picture of their destination arrive prepared to stay.
Victoria Harper
Editor-in-Chief
Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.
