What Is A Typical American Budget?

Anthony J. Ogorek | Ed.D., CFP®

Anthony J. Ogorek | Ed.D., CFP®

The more we have, the more we spend. The biggest spike in spending occurs when our incomes make their big first jump: after we turn 25. We begin to gain traction in our careers and momentous life changes.  Each age group has different priorities and responsibilities that they need to focus on.


Those who are younger than 25 and younger are just starting out. They are beginning their blossoming careers and finishing up education. They  tend to be more frugal, but one thing they are spending on is education.


25-34 year olds or millennials are now settling in their jobs. They see the first big spike in their spending. They begin to start paying down debt and begin to save.


Adulthood (35-44) has the highest costs. This is the marriage and mortgage years and expenditures increase further with children.


Middle Age (45-54) sees a slight increase over adulthood. Transportation costs top out as children begin to drive and education becomes a factor as children head off to college.


You begin to get a break once you become an empty nester (55-64). Income drops off after 55, however, so does food and transportation costs.


Finally, you hit the golden years (65+) . Your monthly budgets dwindle and you begin to downsize. Spending in many different categories subsides except for healthcare.




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Ogorek Wealth Management, LLC

Ogorek Wealth Management, LLC