According to the Bureau of Labor Statistics (BLS), the average American household spends $77,300 a year — but how is this annual expenditure broken down?

Using data from the BLS's Consumer Expenditures Survey, Visual Capitalist charted the average spending habits of Americans in 2023.

The lion's share of American consumers' money goes on housing, which costs an average of $25,436, or just under 33 percent of the year's total spending.

The second-largest portion is spent on transportation ($13,174), followed by personal insurance and pensions ($9,556) and healthcare ($6,159).

Just $1,656 of the average US household's annual spending goes towards education, and that's up 24 percent from the year before.

Click image to enlarge

Via Visual Capitalist.