Data: Massive Survey Shows How Generations Spend Money

A new federal survey reveals housing, food, and transportation consume nearly half of the average American household's income, with younger generations bearing the heaviest housing burden [1]. The Consumer Expenditure Surveys, conducted by the Bureau of Labor Statistics, show these three core expenses used 48% of a household's pre-tax income in 2024 [1]. Housing alone accounted for the largest single share at 25.2% [1]. The data highlights generational divides: Gen Z spent 30.8% of their income on housing, compared to 24.5% for Millennials and 21.6% for Gen X [1]. Despite having lower average incomes, Baby Boomers kept their mortgage and rent costs as a share of income comparable to Gen X, at 9.9% and 9.7% respectively, a trend likely aided by a higher rate of paid-off mortgages [1]. The survey also captured granular spending, such as an average of $539 on bakery products and $131 on postage and stationery [1]. The federal government has conducted detailed expenditure surveys since 1888, with the latest data providing a magnified view of spending patterns across different age groups [1]. While core expenses take up the greatest share of income for the youngest and oldest generations, the survey notes that ongoing costs like healthcare become a significant and often unpredictable burden in retirement, even as incomes fall [1].