How Your Spending Stacks Up by Age: The Latest Federal Data

American households tend to spend the most in their late 40s and early 50s, and then spending declines in each older age bracket.

Key Takeaways

• U.S. households spent an average of about $6,825 a month in 2025.
• Spending peaks among households headed by someone ages 45 to 54, at nearly $8,900 a month.
• Housing is the biggest expense at every age, while healthcare takes a larger budget share in later life.

New Bureau of Labor Statistics data show that the average U.S. household spent $81,905 in 2025, or about $6,825 a month. That was up 4.3% from 2024 and outpaced the 2.7% increase in consumer prices.

The overall average masks a gap of nearly $49,000 between the highest-spending age group and the oldest households.

Why This Matters to You

The BLS survey is the closest thing the government provides to a spending benchmark for each stage of life, and financial planners use it to shape budgets and retirement plans. The averages should be treated as a reference point, not a goal, because household size, income, and location also affect spending.

The Peak Spending Years

Households headed by someone ages 45 to 54 spent almost $106,700 in 2025, the highest amount of any age group. That was up from a little over $100,000 the year before, a 6.3% increase that topped the 4.3% gain for all households.

Next came households headed by someone ages 35 to 44, with spending of about $93,600 a year, followed by those ages 55 to 64 at more than $85,000. Spending was lower in each older age category after that. By contrast, the youngest households — those headed by someone under 25 — spent about $54,000, roughly half as much as the peak-spending group.

A note about the numbers

Because of a government shutdown, the BLS was unable to collect survey data in October and November last year and reweighted the rest of 2025 to fill the gap.

The spending peak lines up with the course of a working life. Households in their late 40s and early 50s typically have the most earners under one roof and the highest pretax incomes of any age group, according to the BLS data. Many of these households also face the costs of bigger homes and larger families.

Spending then drops in older age groups. Households headed by someone ages 65 to 74 spent a little over $69,000 a year, while those 75 and older spent almost $58,000 annually.

Not all of that decline comes from tightening belts. David Blanchett, head of retirement research at PGIM DC Solutions, found in a Journal of Financial Planning study that spending in retirement falls by about 1% a year. His follow-up in Financial Planning Review showed the drop occurs even among wealthier retirees who can afford to spend more.

Where the Money Goes

Housing is the largest expense for every age group, making up about a third of spending across all households in 2025. It takes the biggest share of the budget among households headed by someone 75 and older, at 39%, with those ages 25 to 34 close behind at about 37%.

But the bills differ by age. For younger households, shelter alone accounts for about a quarter of spending. Older households, many of whom own their homes outright, devote more of their budgets to property taxes, maintenance, and utilities, according to the BLS data.

Transportation is the second-largest expense for working-age households. Annual transportation spending falls from about $18,000 among households headed by someone ages 45 to 54 to about $12,000 for those ages 65 to 74 and $7,500 for those 75 and older, as many older adults no longer commute.

Healthcare moves in the opposite direction. It accounts for about 3% of spending for households under 25, but 14% for those 75 and older. Among the oldest households, healthcare spending is higher than transportation spending.

Much of that healthcare spending goes to premiums rather than doctor visits: health insurance makes up about two-thirds of healthcare expenses among households headed by someone 65 and older.

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