100 Years of Consumer Spending

Spending habits have changed significantly over the last century. We have seen great increases in the percentage of income that is allocated to housing and transportation, relative spending on food and clothing has fallen. Here is a full breakdown of how consumer spending has changed over the last 100 years.

In 1901, food and housing together took up about 60 percent of people’s incomes. About 40 percent of a consumer’s income was spent on food and about 20 percent of a consumer’s income was spent on housing. About 20 percent of a consumer’s income was spent on apparel. Virtually none of it was spent on transportation. Health care took up about 5 percent of a consumer’s income. Entertainment required about 2 percent of a consumer’s income. Reading was about 1 percent of the income. Alcohol was about 1 percent of a 1901 consumer’s income. Other expenses claimed the final 11 percent.

From 1934 to 1946, food and housing together took up about 60 percent of people’s incomes. About 34 percent of a consumer’s income was spent on food and about 26 percent of a consumer’s income was spent on housing. About 12 percent of a consumer’s income was spent on apparel. About 10 percent of it was spent on transportation. Health care took up about 3 percent of a consumer’s income. Entertainment required about 5 percent of a consumer’s income. Reading was less than 1 percent of the income. Alcohol was not purchased because of prohibition. Other expenses claimed the final 9 percent.

In 1950, food and housing together took up about 55 percent of people’s incomes. About 34 percent of a consumer’s income was spent on food and about 21 percent of a consumer’s income was spent on housing. About 12 percent of a consumer’s income was spent on apparel. About 11 percent of it was spent on transportation. Health care took up about 5 percent of a consumer’s income. Entertainment required about 5 percent of a consumer’s income. Reading was about 1 percent of the income. Alcohol was about 1 percent of a consumer’s income. Other expenses claimed the final 10 percent.

From 1960 to 1961, food and housing together took up about 53 percent of people’s incomes. About 25 percent of a consumer’s income was spent on food and about 28 percent of a consumer’s income was spent on housing. About 10 percent of a consumer’s income was spent on apparel. About 15 percent of it was spent on transportation. Health care took up about 6 percent of a consumer’s income. Entertainment required about 4 percent of a consumer’s income. Reading was about 2 percent of the income. Alcohol was about 2 percent of a consumer’s income. Other expenses claimed the final 8 percent.

From 1972 to 1973, food and housing together took up about 50 percent of people’s incomes. About 21 percent of a consumer’s income was spent on food and about 29 percent of a consumer’s income was spent on housing. About 8 percent of a consumer’s income was spent on apparel. About 24 percent of it was spent on transportation. Health care took up about 5 percent of a consumer’s income. Entertainment required about 3 percent of a consumer’s income. Reading was about 2 percent of the income. Alcohol was about 2 percent of a consumer’s income. Other expenses claimed the final 6 percent.

From 1984 to 1985, food and housing together took up about 44 percent of people’s incomes. About 14 percent of a consumer’s income was spent on food and about 30 percent of a consumer’s income was spent on housing. About 6 percent of a consumer’s income was spent on apparel. About 20 percent of it was spent on transportation. Health care took up about 5 percent of a consumer’s income. Entertainment required about 5 percent of a consumer’s income. Reading was about 2 percent of the income. Alcohol was about 2 percent of a consumer’s income. Other expenses claimed the final 16 percent.

From 1996 to 1997, food and housing together took up about 45 percent of people’s incomes. About 14 percent of a consumer’s income was spent on food and about 31 percent of a consumer’s income was spent on housing. About 5 percent of a consumer’s income was spent on apparel. About 20 percent of it was spent on transportation. Health care took up about 7 percent of a consumer’s income. Entertainment required about 5 percent of a consumer’s income. Reading was about 2 percent of the income. Alcohol was about 1 percent of a consumer’s income. Other expenses claimed the final 15 percent.

From 2002 to 2003, food and housing together took up about 45 percent of people’s incomes. About 13 percent of a consumer’s income was spent on food and about 33 percent of a consumer’s income was spent on housing. About 4 percent of a consumer’s income was spent on apparel. About 22 percent of it was spent on transportation. Health care took up about 6 percent of a consumer’s income. Entertainment required about 5 percent of a consumer’s income. Reading was about 2 percent of the income. Alcohol was about 1 percent of a consumer’s income. Other expenses claimed the final 15 percent.

Yearly Income vs. Expenditures

The relationship between income and expenses has varied over the years, with income generally growing faster than expenses until the 1970s. During the following decade, it dropped significantly.

In 1901, income in excess of expenses was -2.4 percent. In 1918, income in excess of expenses was -5.5 percent. In 1934 to 1936, income in excess of expenses was 0.78 percent. In 1950, income in excess of expenses was 10.1 percent. In 1960 and 1961, income in excess of expenses was 19.4 percent. In 1972 and 1973, income in excess of expenses was 26.9 percent. In 1984 and 1985, income in excess of expenses was 6.3 percent. In 1996 and 1997, income in excess of expenses was 11.9 percent. In 2002 and 2003, income in excess of expenses was 18.9 percent.