Nearly half of all consumer spending on food, housing

Contrary to the popular notion that most Americans are frivolous spenders, almost $28,000 (49.8 percent) of the $56,000 in average U.S. household spending each year goes for food and housing, according to the most recent Consumer Expenditure Survey (CES) data from the Bureau of Labor Statistics (BLS).

Add in an average of just over $7,000 for transportation, and annual expenditures in just three essential categories equals about 62 percent of total average annual spending, according to the BLS, which collects information on families’ buying habits, income, and household characteristics to help government and private agencies study the welfare of particular segments of the population.