Personal Finance
How Do Americans Spend Their Money, By Generation?
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.
Personal Finance
Mapped: What You Need to Earn to Own a Home in 50 American Cities
What does it take to own a home in the U.S. in 2023? Here’s a look at the salary needed for home ownership in the top 50 metro areas.

What You Need to Earn to Own a Home in 50 American Cities
Once a fundamental part of the American dream, the ability to own a home is drifting farther and farther away for many Americans.
Between skyrocketing prices, stagnating wages, and now rising interest rates, the deck seems to be increasingly stacked against home ownership.
Using May 2023 data tabulated by Home Sweet Home, we map out the annual salary needed to afford a 30-year mortgage (at 6.37%) to buy a home in America’s 50 most populous metropolitan areas.
The monthly minimum mortgage payment includes taxes and insurance as well, and is capped at roughly one-third of the income. This analysis also assumes that the homeowner will put down a 20% down payment.
The Least and Most Affordable American Cities to Own a Home
At the top of the list, and at the very west of the country, San Jose is the least affordable city to own a home for the average American.
One would have to earn at least $374,000 a year to afford a $1.6 million dollar home in the city.
To put those numbers into perspective, the median American annual income is $75,000, about one-fifth what’s required to buy a home in San Jose.
Here’s a look at the annual earnings needed to afford a home in all 50 largest cities in the U.S., ranked from least to most affordable.
Rank | Metro Area | State | Median Home Price | Annual Salary |
---|---|---|---|---|
1 | San Jose | California | $1,618,400 | $373,696 |
2 | San Francisco | California | $1,192,600 | $282,167 |
3 | San Diego | California | $880,000 | $209,110 |
4 | Los Angeles | California | $746,800 | $181,106 |
5 | Seattle | Washington | $699,300 | $170,340 |
6 | Boston | Massachusetts | $644,400 | $165,239 |
7 | New York City | New York | $577,300 | $160,233 |
8 | Denver | Colorado | $636,100 | $150,622 |
9 | Washington, D.C. | N/A | $557,200 | $139,911 |
10 | Miami | Florida | $560,000 | $137,574 |
11 | Portland | Oregon | $556,800 | $136,147 |
12 | Riverside/San Bernardino | California | $550,000 | $133,607 |
13 | Austin | Texas | $467,900 | $128,995 |
14 | Sacramento | California | $500,000 | $125,304 |
15 | Salt Lake City | Utah | $522,700 | $122,717 |
16 | Providence | Rhode Island | $417,000 | $112,281 |
17 | Orlando | Florida | $419,900 | $104,772 |
18 | Dallas | Texas | $372,400 | $103,460 |
19 | Phoenix | Arizona | $439,700 | $103,112 |
20 | Raleigh | North Carolina | $420,000 | $102,572 |
21 | Las Vegas | Nevada | $431,400 | $101,310 |
22 | Tampa | Florida | $390,000 | $97,387 |
23 | Minneapolis | Michigan | $361,500 | $94,466 |
24 | Hartford | Connecticut | $314,900 | $93,861 |
25 | Charlotte | North Carolina | $387,200 | $93,735 |
26 | Jacksonville | Florida | $370,000 | $93,422 |
27 | Baltimore | Maryland | $357,800 | $93,378 |
28 | Nashville | Tennessee | $385,800 | $93,168 |
29 | Chicago | Illinois | $321,000 | $92,868 |
30 | Houston | Texas | $327,000 | $91,826 |
31 | Milwaukee | Wisconsin | $339,600 | $89,752 |
32 | Atlanta | Georgia | $354,300 | $89,198 |
33 | Richmond | Virginia | $362,300 | $88,769 |
34 | San Antonio | Texas | $320,500 | $88,683 |
35 | Philadelphia | Pennsylvania | $315,300 | $87,293 |
36 | Virginia Beach | Virginia | $313,200 | $79,336 |
37 | Kansas City | Missouri | $291,000 | $76,147 |
38 | Columbus | Ohio | $284,700 | $76,133 |
39 | Indianapolis | Indiana | $289,300 | $71,409 |
40 | New Orleans | Louisiana | $265,200 | $68,946 |
41 | Memphis | Tennessee | $268,600 | $68,005 |
42 | Birmingham | Alabama | $276,500 | $67,773 |
43 | Cincinnati | Ohio | $252,200 | $66,260 |
44 | Buffalo | New York | $206,800 | $63,386 |
45 | St Louis | Missouri | $231,100 | $63,260 |
46 | Detroit | Michigan | $227,000 | $62,758 |
47 | Louisville | Kentucky | $246,000 | $62,741 |
48 | Oklahoma City | Oklahoma | $227,300 | $62,161 |
49 | Cleveland | Ohio | $191,400 | $55,515 |
50 | Pittsburgh | Pennsylvania | $175,000 | $50,316 |
National | $371,200 | $97,204 |
Other Californian cities, San Francisco (ranked 2nd), San Diego (3rd), and Los Angeles (4th) all require an annual income of at least $180,000 to attempt home ownership within their metropolitan boundaries.
Boston (ranked 6th) and New York (ranked 7th) represent unaffordability on the East Coast, both requiring at least $160,000 a year to buy homes there.
It’s not just the coasts that are expensive however. To buy a home in Denver (ranked 8th) and Salt Lake City (15th) means earning more than $120,000 a year.
However, cities in the Midwest and South, like Pittsburgh, Detroit, Oklahoma City, and Louisville, are far more affordable, requiring less than $63,000 a year to buy a home.
Interest Rates Rock Home Ownership Chances
Aside from the obvious price differences in housing markets, a key factor that has elevated income requirements across the board is the rapid rise in interest rates in the last year. In fact the average 30-year mortgage has pushed past 7%, the highest it’s been since the 2000s.
This means that while the median price of a house in San Jose has actually come down between 2022 and 2023, the minimum monthly payment has increased from $7,717 to $8,720 this year.
Rank | Metro Area | State | Median Home Price | Monthly Payment |
---|---|---|---|---|
1 | San Jose | California | $1,618,400 | $8,720 |
2 | San Francisco | California | $1,192,600 | $6,584 |
3 | San Diego | California | $880,000 | $4,879 |
4 | Los Angeles | California | $746,800 | $4,226 |
5 | Seattle | Washington | $699,300 | $3,975 |
6 | Boston | Massachusetts | $644,400 | $3,856 |
7 | New York City | New York | $577,300 | $3,739 |
8 | Denver | Colorado | $636,100 | $3,515 |
9 | Washington, D.C. | N/A | $557,200 | $3,265 |
10 | Miami | Florida | $560,000 | $3,210 |
11 | Portland | Oregon | $556,800 | $3,177 |
12 | Riverside/San Bernardino | California | $550,000 | $3,118 |
13 | Austin | Texas | $467,900 | $3,010 |
14 | Sacramento | California | $500,000 | $2,924 |
15 | Salt Lake City | Utah | $522,700 | $2,863 |
16 | Providence | Rhode Island | $417,000 | $2,620 |
17 | Orlando | Florida | $419,900 | $2,445 |
18 | Dallas | Texas | $372,400 | $2,414 |
19 | Phoenix | Arizona | $439,700 | $2,406 |
20 | Raleigh | North Carolina | $420,000 | $2,393 |
21 | Las Vegas | Nevada | $431,400 | $2,364 |
22 | Tampa | Florida | $390,000 | $2,272 |
23 | Minneapolis | Michigan | $361,500 | $2,204 |
24 | Hartford | Connecticut | $314,900 | $2,190 |
25 | Charlotte | North Carolina | $387,200 | $2,187 |
26 | Jacksonville | Florida | $370,000 | $2,180 |
27 | Baltimore | Maryland | $357,800 | $2,179 |
28 | Nashville | Tennessee | $385,800 | $2,174 |
29 | Chicago | Illinois | $321,000 | $2,167 |
30 | Houston | Texas | $327,000 | $2,143 |
31 | Milwaukee | Wisconsin | $339,600 | $2,094 |
32 | Atlanta | Georgia | $354,300 | $2,081 |
33 | Richmond | Virginia | $362,300 | $2,071 |
34 | San Antonio | Texas | $320,500 | $2,069 |
35 | Philadelphia | Pennsylvania | $315,300 | $2,037 |
36 | Virginia Beach | Virginia | $313,200 | $1,851 |
37 | Kansas City | Missouri | $291,000 | $1,777 |
38 | Columbus | Ohio | $284,700 | $1,776 |
39 | Indianapolis | Indiana | $289,300 | $1,666 |
40 | New Orleans | Louisiana | $265,200 | $1,609 |
41 | Memphis | Tennessee | $268,600 | $1,587 |
42 | Birmingham | Alabama | $276,500 | $1,581 |
43 | Cincinnati | Ohio | $252,200 | $1,546 |
44 | Buffalo | New York | $206,800 | $1,479 |
45 | St Louis | Missouri | $231,100 | $1,476 |
46 | Detroit | Michigan | $227,000 | $1,464 |
47 | Louisville | Kentucky | $246,000 | $1,464 |
48 | Oklahoma City | Oklahoma | $227,300 | $1,450 |
49 | Cleveland | Ohio | $191,400 | $1,295 |
50 | Pittsburgh | Pennsylvania | $175,000 | $1,174 |
National | $371,200 | $2,268 |
So to afford a median-priced home in the country, an American needs to earn closer to $100,000 a year, up from $75,500 in 2022. And even then, they would be priced out of owning a home in nearly half of the 50 largest cities in the country.
As a result Americans may yet further delay home ownership. Renting is now a far more attractive option, thanks to the biggest difference between rent and mortgages in over 50 years.
Where Does This Data Come From?
Source: Home Sweet Home (HSH).
Note: HSH used different sources for their median home prices, mortgage rate, property taxes and home insurance figures for their analysis. Please visit their website for more information.
Other: If other personal debts exceed 8% of one’s given monthly gross income, this may increase the salary needed to qualify for a mortgage.
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