Life has gotten more expensive for everyone over the past few years. But just how much does it cost to get by today?
Recently, New York Life broke down the numbers to determine just how much Americans are paying in monthly costs.
A survey of 2,200 adults found that 90% have some level of concern about current economic conditions, with 63% worried about the rising cost of living and 56% fretting over the climbing price of everyday expenses.
In a summary of the findings, Donn Froshiesar — head of consumer insights at New York Life — notes that although many folks have made progress in paying down credit card debt, they continue to struggle with higher prices:
“We can see the toll inflation is taking on Americans’ finances, as they report higher costs of living on everyday expenses and report lower levels of financial confidence. As a result, Americans are adjusting by reducing their spending, especially on ‘fun’ purchases like dining out and buying new clothes.”
So, just how much do you pay for daily expenses — and how do such costs compare to those of your peers? Find out by comparing your spending to that of adults polled by New York Life.
Utilities
Average spending: $397.24 per month
Amount by which this expense increased over the past year: $161.45 per month
The rising cost of utilities is evident in a spike in electricity prices, which have been increasing at a faster pace than overall inflation — 5.9% between May 2023 and May 2024, according to data from the U.S. Bureau of Labor Statistics.
The situation might soon get worse.
In March, the U.S. Energy Information Administration predicted that residential customers would pay 16.23 cents per kilowatt-hour for electricity in 2025, up from 15.98 cents in 2023.
Food
Average spending: $523.81 per month
Amount by which this expense increased over the past year: $209.45 per month
Between 2019 and 2023, the price of food jumped by 25%, according to the U.S. Department of Agriculture. Arguably, the rising cost of food has impacted a broader swath of Americans than any other expense over the past few years.
You don’t have to accept these price increases without a fight. For more, check out “18 Strategies for Trimming Your Grocery Budget.”
Rent
Average spending: $1,077.33 per month
Amount by which this expense increased over the past year: $302.94 per month
How expensive has rent become? Brokerage firm Redfin reports that just 39% of renter households make enough cash to afford a median-priced rental unit in the U.S.
The good news is that rents are now growing at a “snail’s pace” compared to rapid increases during the COVID-19 pandemic, according to Redfin. And renting can be a great deal overall, as we explain in “9 Reasons Renting Is Better Than Buying a Home.”
Mortgage
Average spending: $1,809.77 per month
Amount by which this expense increased over the past year: $451.15 per month
Unless you live under a rock — which might be about the only place you can afford these days — everybody knows housing costs have soared out of control.
An analysis by ResiClub found that housing prices have rocketed about 47% higher since 2020. Millions of people no longer can afford homes and worry that they will rent forever.
However, those who are willing to move to one of the “10 Places Where Many Homes Are Actually Affordable” might still have a shot at the American dream of homeownership.
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