Personal Finance

How Do Americans Spend Their Money, By Generation?

Published

3 years ago

September 25, 2022

Preethi Lodha

Featured Creator

Article/Editing:

Carmen Ang

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How Americans Spend Their Money, By Generation

In 2021, the average American spent just over $60,000 a year. But where does all their money go? Unsurprisingly, spending habits vary wildly depending on age.

This graphic by Preethi Lodha uses data from the U.S. Bureau of Labor Statistics to show how average Americans spend their money, and how annual expenses vary across generations.

A Generational Breakdown of Overall Spending

Overall in 2021, Gen X (anyone born from 1965 to 1980) spent the most money of any U.S. generation, with an average annual expenditure of $83,357.

Generation	Birth Year Range	Average Annual Expenditure (2021)
Silent	1945 or earlier	$44,683
Boomers	1946 to 1964	$62,203
Generation X	1965 to 1980	$83,357
Millennials	1981 to 1996	$69,061
Generation Z	1997 or later	$41,636

Gen X has been nicknamed the “sandwich generation” because many members of this age group are financially supporting both their aging parents as well as children of their own.

The second biggest spenders are Millennials with an average annual expenditure of $69,061. Just like Gen X, this generation’s top three spending categories are housing, healthcare, and personal insurance.

On the opposite end of the spectrum, members of Generation Z are the lowest spenders with an average of $41,636. per year. Their spending habits are expected to ramp up, especially considering that in 2022 the oldest Gen Zers are just 25 and still early in their careers.

Similarities Across Generations

While spending habits vary depending on the age group, there are some categories that remain fairly consistent across the board.

One of the most consistent spending categories is housing—it’s by the far the biggest expense for all age groups, accounting for more than 30% of total annual spending for every generation.

Generation	Average Spend on Housing (2021)	% of Total Spend
Silent (1945 or earlier)	$16,656	37.3%
Boomers (1946 to 1964)	$21,273	34.2%
Generation X (1965 to 1980)	$26,385	31.7%
Millennials (1981 to 1996)	$24,052	34.8%
Generation Z (1997 or later)	$15,449	37.1%

Another spending category that’s surprisingly consistent across every generation is entertainment. All generations spent more than 4% of their total expenditures on entertainment, but none dedicated more than 5.6%.

Generation	Average Spend on Entertainment (2021)	% of Total Spend
Silent (1945 or earlier)	$2,027	4.5%
Boomers (1946 to 1964)	$3,476	5.6%
Generation X (1965 to 1980)	$4,694	5.6%
Millennials (1981 to 1996)	$3,457	5.0%
Generation Z (1997 or later)	$1,693	4.1%

Gen Zers spent the least on entertainment, which could boil down to the types of entertainment this generation typically enjoys. For instance, a study found that 51% of respondents aged 13-19 watch videos on Instagram on a weekly basis, while only 15% watch cable TV.

Differences Across Generations

One category that varies the most between generations and relative needs is spending on healthcare.

As the table below shows, the Silent Generation spent an average of $7,053 on healthcare, or 15.8% of their total average spend. Comparatively, Gen Z only spent $1,354 on average, or 3.3% of their total average spend.

Generation	Average Spend on Healthcare (2021)	% of Total Spend
Silent (1945 or earlier)	$7,053	15.8%
Boomers (1946 to 1964)	$6,594	10.6%
Generation X (1965 to 1980)	$5,550	6.7%
Millennials (1981 to 1996)	$4,026	5.8%
Generation Z (1997 or later)	$1,354	3.3%

However, while the younger generations typically spend less on healthcare, they’re also less likely to be insured—so those who do get sick could be left with a hefty bill.

This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

Related Topics:Millennials Baby Boomers gen z consumption expenses gen x consumer spending The Silent Generation tableau U.S. Spending habits average annual expenditure

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Wealth

Mapped: Annual Retirement Costs by State

Explore annual retirement costs by state, from the most expensive places like Hawaii to budget-friendly options in the Midwest & South.

Published

3 days ago

June 11, 2025

Marcus Lu

Mapped: Annual Retirement Costs by State

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Key Takeaways

Hawaii is the most expensive state to retire comfortably in, requiring nearly $130K per year
That’s more than double of the cheapest states, which include West Virginia ($58K annually) and Oklahoma ($60K annually)

Retirement costs can vary dramatically depending on where you live in the United States.

While some states offer an affordable path to a comfortable retirement, others demand six-figure annual budgets. This infographic maps the annual cost of retirement across all 50 U.S. states, revealing the most and least expensive places for retirees.

Data and Methodology

The data for this visualization comes from GOBankingRates.

They analyzed the following expenditures of Americans aged 65 and older, based on data sourced from the Bureau of Labor Statistics’ (BLS) most recent Consumer Expenditure Survey release for the full year of 2023:

🍎 Annual spending on groceries, defined as “food at home”
🏠 Annual spending on housing, defined as “shelter”
🚗 Annual spending on transportation, defined as “gasoline, other fuels and motor oil” AND “other vehicle expenses”
💊 Annual spending on healthcare
💡 Annual spending on utilities, defined as “utilities, fuels, and public services”
📊 Overall average annual expenditures

Spending estimates were adjusted to the state level by multiplying each cost category by its corresponding cost of living index score in each state, sourced from the Missouri Economic Research and Information Center’s 2024 Q2 cost of living index data.

After calculating total consumption expenditures, an additional (7) savings buffer was calculated by assuming that total expenditures consume 80% of ones budget (50% for necessities and 30% for discretionary spending), with 20% left over for savings.

GOBankingRates then combined factors (6) and (7) and factored it out by 20 (assuming 20 years of retirement) to give (8) retirement savings needed to live comfortably. All data was collected on and up to date as of Oct. 1, 2024.

State	Total Expenditures	20% Comfort Buffer	Annual Retirement Cost
West Virginia	$48,492	$9,698	$58,190
Oklahoma	$49,996	$9,999	$59,995
Kansas	$50,517	$10,103	$60,620
Alabama	$50,980	$10,196	$61,176
Mississippi	$51,096	$10,219	$61,315
Arkansas	$51,211	$10,242	$61,454
Missouri	$51,211	$10,242	$61,454
Iowa	$52,137	$10,427	$62,565
Indiana	$52,253	$10,451	$62,704
Tennessee	$52,253	$10,451	$62,704
Georgia	$52,832	$10,566	$63,398
Michigan	$53,121	$10,624	$63,745
Louisiana	$53,295	$10,659	$63,954
Texas	$53,468	$10,694	$64,162
Kentucky	$53,584	$10,717	$64,301
North Dakota	$53,700	$10,740	$64,440
Illinois	$53,989	$10,798	$64,787
Nebraska	$54,047	$10,809	$64,856
South Dakota	$54,047	$10,809	$64,856
New Mexico	$54,163	$10,833	$64,995
Ohio	$54,394	$10,879	$65,273
Montana	$54,741	$10,948	$65,689
Minnesota	$54,857	$10,971	$65,828
Wyoming	$55,031	$11,006	$66,037
Pennsylvania	$55,320	$11,064	$66,384
Wisconsin	$56,130	$11,226	$67,356
South Carolina	$56,477	$11,295	$67,773
North Carolina	$56,998	$11,400	$68,398
Delaware	$58,387	$11,677	$70,064
Idaho	$58,503	$11,701	$70,203
Virginia	$58,618	$11,724	$70,342
Colorado	$58,908	$11,782	$70,689
Nevada	$59,428	$11,886	$71,314
Utah	$59,544	$11,909	$71,453
Florida	$59,660	$11,932	$71,592
Arizona	$63,942	$12,788	$76,730
Maine	$64,405	$12,881	$77,286
Connecticut	$65,504	$13,101	$78,605
Rhode Island	$65,620	$13,124	$78,744
New Hampshire	$65,736	$13,147	$78,883
New Jersey	$65,794	$13,159	$78,952
Oregon	$66,025	$13,205	$79,230
Vermont	$66,372	$13,274	$79,647
Washington	$66,604	$13,321	$79,925
Maryland	$67,240	$13,448	$80,688
New York	$71,233	$14,247	$85,480
Alaska	$72,390	$14,478	$86,868
Massachusetts	$83,501	$16,700	$100,201
California	$83,906	$16,781	$100,687
Hawaii	$107,746	$21,549	$129,296

🌴 Hawaii Tops the List

Hawaii ranks as the most expensive state to retire, with average annual expenditures reaching $129,296. This high cost is largely driven by steep prices for housing, groceries, and healthcare.

According to U.S. News & World Report, Hawaii consistently ranks near the top for quality of life—but retirees must be prepared for a financial commitment nearly double that of more affordable states.

🏡 Affordable Living in the Midwest and South

Retirees on a budget often find the best value in West Virginia, Oklahoma, and Kansas, where average annual retirement costs remain around $50,000 annually.

These states benefit from significantly lower housing prices, modest property taxes, and minimal day-to-day expenses.

🌆 High Costs in the Northeast and West Coast

Retiring in Massachusetts, California, and New York comes at a premium—residents in these states will spend over $70,000 per year to maintain a comfortable lifestyle. In a similar analysis by GOBankingRates, this could work out to around $1.3 to $1.6 million in total savings needed.

These states combine high housing costs, elevated healthcare expenses, and often steeper taxes. In fact, New York has the highest tax burden of any state.