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Let’s talk about the average monthly expenses for a family of five. This sample budget for family fun will share the average spending for clothing, groceries, etc.
Average Monthly Expenses for Family of Five
I did my original budget post in 2014. I would encourage you to check that post out first as it tells a lot of the history about how budgeting worked (and didn’t work) for us. I was going to re-do the graphic for that post, but then realized the whole post needs updating. So, without further adieu, this is our revised budget as of late.
It is stillfairly similar to the old one, but it is SO important to keep the budgeting discussion open in a marriage. I want my husband happy with the money in each category, and I don’t want us feel “constrained” by the budget, but rather supported so it helps us evaluate wants vs. needs. WE do evaluate the budget once a quarter together, usually over food. 🙂
As an aside, my husband has quit his job and is looking for one. At this point it hasn’t affected our budget all that much. In the areas where it has affected it I will note it.
Keep in mind that many bills are an average, and our budget has to have some flexibility in the "bill" department -- a big flex is our electricity bill that is about 3X's the amount in the summer, and obviously less in the winter.
Cell phone 125 (we recently upgraded to Verizon due to a lack of coverage when traveling, and I have been pleased — we do split a Verizon plan with my parents)
Water/trash 80(on average)
Internet65 (we have a nice high speed plan and it is necessary for the blog work that I do — also a partial write-off)
Netflix 10
Car insurance 85 (we save this monthly and pay the bill every 6 months)
Electricity 150 (average — I would say it varies between 80-200)
HOA 38
Life Insurance 50 (we each pay quarterly, I just took our payment and devided it by 3, we each use different carriers because it was cheaper that way)
Lunch Money 45(luxury, it could be cut if necessary)
Health insurance650(this will be the price for all 5 of us on one plan {sigh}— we have a 5.5k deductible HSA plan — I really WISH we could have better coverage, but we really can’t)
Household Money Budget
Weekly money360 — we get 80/week. Check out that post, great info on there! In brief, this money pays for all groceries and anything else we need beyond the Costco and other things listed below. Seriously, check out the post about this. This weekly money cateogry is what SAVED us!
Costco200 (up from 150 — I gave myself a Costco raise after graduation, mostly because we were ALWAYS going over budget there, even when we just bought necessities)
Gas200 (this went up when Drew was working 1/2 hour away, but it will probably go WAY down if he doesn’t get another job, in the summer it should be pretty low as well as I am the only one working)
Dating 100
Clothing/Household 100
Personal Money 100 — this is money we each get out at the beginnig of the month that the other has no say in how we spend it. The 200 bucks between this and dating is WAY cheaper than a lawyer!
If you add all these numbers up plus our mortgage payment our budget is just under $3,600
We also pay 10% of our income in tithing, and we stow a lot of money in savings and in our HSA. In a perfect month I like to make at least 5k. Drew’s salary is really constant, and mine fluctuates quite a lot. For that reason, and because it is safest, we pre-fund each month’s budget with the prior month’s salary. Be sure to check that post out also!
I should also add that I am extremely debt-adverse. While I disagree with Dave Ramsey on a few things, I do agree that it is not our best choice to carry a debt balance and investing that money instead. We have paid off debts and invested thereafter. Our only current debt right now is our mortgage payment. Our cars are losers, and we are getting to the point that the mechanic bill will be more than a car payment, but we’re not there yet. We are EXTREMELY lucky to be this way. I am well aware it’s not possible in many situations.
We also have other savings accounts that pay for family fun (vacations) and any home/car improvements. You can read about those and how we use our “extra” money in this post.
Anyway, that’s our budget. Every family is different. Everyone prioritizes differently. We have a fairly large date budget as compared to the rest of my budget, and that’s a choice we’ve made. You’ll make choices too. 🙂
If you want to take away the “mistique” of family budgeting, be sure to sign up for my newsletter for very DOABLE tips to keep your family in the black!
I also have a post with an example on how to budget right here!
FYI, this post was written in 2015, but has been updated
According to the BLS survey, the average monthly expenses for a family of five or more were $8,048 in 2022 – or $392 less than the average family of four. Families of five or more saw their expenses increase by an average of 9% from 2021 to 2022. This quirk isn't as mysterious as it first appears.
According to the BLS survey, the average monthly expenses for a family of five or more were $8,048 in 2022 – or $392 less than the average family of four. Families of five or more saw their expenses increase by an average of 9% from 2021 to 2022. This quirk isn't as mysterious as it first appears.
Average household earnings in 2022 were $94,003, while average total expenditures for the year were $72,967, according to the Bureau of Labor Statistics' Consumer Expenditure Survey. This included an average of $24,298 on housing, $12,295 on transportation and $9,343 on food.
A good plan for most families is the 50/30/20 budget, which corresponds with your needs, wants and goals: 50 percent for housing, bills, groceries and other everyday necessities. 30 percent for nonessentials (gifts, vacations, entertainment, dinners out) 20 percent for savingsand paying down debt.
On average, a family of five spends anywhere from $922 to $1,488 a month on groceries, according to USDA monthly food plans. If you're looking to curb your spending, consider meal planning, buying in bulk, and shopping at more affordable grocery stores.
A table showing median income by family size in 2021. Data source: U.S. Census Bureau (2023). U.S. median family income peaks with four-person families at $113,919 and levels off at around $107,000 for families of five or larger.
Most financial experts agree that individuals should have at least 6 to 12 months of savings in their account to serve as a safety net in the event of an emergency. This emergency fund doesn't include money for special purposes, such as a college fund, retirement account or down payment for a home.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
A family of four needs to earn at least $106,903 a year to cover their necessities in most U.S. states, a recent SmartAsset study reveals. The findings are based on cost estimates for housing, child care, transportation, health care, taxes and other common expenses, as tracked by the MIT Living Wage calculator.
The largest expense for most Americans is housing. At $1,050 per month, the cost of having a roof over our heads accounts for 21% of a household's monthly budget. Percentage of income is based on after-tax income.
While California ranks third-most expensive for a single adult to live comfortably at $113,652, it only ranks fifth-most expensive for two working adults raising two children. The total family income should be at least $276,724 in the latter case.
The average U.S. household spends $7,316 on food annually, which is about $609.67 per month. The U.S. Department of Agriculture provides monthly food budgets at different price levels to help determine your own grocery spending.
They found that middle-class families with a married couple and two kids spent about $12,350 and $13,900 every year for each child. With an inflation rate of 25.6% from 2015 to 2023, this means that the average cost of raising a child in the United States in 2023 is about $15,512.52–$17,459.43 per year.
The average household spent $130,353 in 2022, equivalent to $2507 per week. This is an increase of 20.4% in nominal terms and 12.75% in real terms compared to 2022.
Introduction: My name is Margart Wisoky, I am a gorgeous, shiny, successful, beautiful, adventurous, excited, pleasant person who loves writing and wants to share my knowledge and understanding with you.
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