Understanding US Household Budget Percentages

In 2017, the Federal Reserve conducted a survey of American households to gauge their financial well-being. The resulting data provides valuable insights into how households allocate their budgets. In this article, we'll explore the percentages of household income spent on various expenses.

What is a Primary Economic Unit (PEU)?

Before diving into the budget percentages, it's essential to understand what constitutes a Primary Economic Unit (PEU). A PEU is defined as an economically dominant single individual or couple (married or living as partners) in a household and all other individuals who are financially interdependent with that individual or couple.

Household Budget Percentages

The Federal Reserve's Survey of Consumer Finances (SCF) provides data on household budget percentages. In 2017, the survey consisted of 5,783 interviews with households across the United States. The results show that households allocated their income across various expenses.

Here are some key statistics:

* Housing: 33.4% - This includes mortgage or rent payments, property taxes, and insurance.

* Transportation: 17.2% - This includes car loans or lease payments, gas, maintenance, and insurance.

* Food: 13.3% - This includes groceries, dining out, and takeout.

* Insurance and Pensions: 10.4% - This includes life insurance, health insurance, and retirement savings.

* Debt Repayment: 8.6% - This includes credit card debt, student loans, and personal loans.

Net Worth Percentiles

The SCF also provides data on household net worth percentiles. In 2020, the top 1% of households held more than $13 million in net worth, while the median household had a net worth of around $192,000.

* Top 1%: $13,666,778

* Median: $192,084

* Average: $1,059,470

Understanding US household budget percentages provides valuable insights into how households allocate their income. By examining the percentage breakdown of expenses and net worth percentiles, we can gain a better understanding of the financial landscape in America. Whether you're looking to manage your own finances or simply want to stay informed about the economy, these statistics offer a fascinating glimpse into the world of household budgets.

Us household budget percentages 2017