Staff Writer
Americans certainly know how to spend money. And they're doing it at escalating rates—even outpacing inflation.
U.S. households spent an average of $67,000 in 2021 on everything from groceries to political contributions, according to Bureau of Labor Statistics data. That was a 9.1% increase over 2020. Pre-tax incomes were up about 3.7%, and the Consumer Price Index—which measures inflation through urban prices of various goods and services—increased by 4.7%.
Predictably, the highest expenditures among all income brackets are on necessities like housing, transportation, and food. But spending can vary widely among demographics.
CouponBirds used 2021 BLS Consumer Expenditures Survey data to analyze spending differences based on pre-tax household income, examining spending overall and within four major categories. Spending increased within all income brackets in 2021 and grew faster than pre-tax earnings in each.
Income inevitably has the most profound effect on how people spend. The idea of living paycheck to paycheck isn't new. Still, the data spells it out clearly: Lower-income households must spend a higher share on daily necessities—and don't make enough to cover even that, reinforcing cycles of poverty. Meanwhile, higher earners have more to save and invest in retirement.
Among this data set, the average household size of all survey respondents was 2.4, with the highest income bracket at 3.2 people and the lowest income bracket at 1.7 people. While this analysis focuses on spending at various income levels, household size and other factors (age, race, place, etc.) also influence spending patterns.
Continue reading to learn more about how Americans spend depending on household income.
After a brief fight on how the plan will be implemented, the Board of Mayor and Alderman passed the first reading of a resolution that will end the weekly pay cycles for two remaining departments in the city starting July 1.
The stated goal of the shift is to make the pay periods consistent among all city employees to “ensure the conduct of orderly and efficient city business,” the ordinance reads.
John has been with the Manchester Times since May 2011. John has won Tennessee Press Association awards for Best News Photo and placed in numerous other categories. John is a 1994 graduate of Tullahoma High School, a graduate of Motlow State Community College and earned a Bachelor of Arts in English from Middle Tennessee State University. He lives in Tullahoma, enjoys painting, dancing and exploring the outdoors.
Staff Writer
Download the free Manchester Times mobile app at the app store. John has won Tennessee Press Association awards for Best News Photo and placed in numerous other categories.
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