Everyday Americans are feeling the weight of inflation more than ever before. Bills are piling up, it's becoming increasingly difficult to buy enough food for families with multiple kids, and many people aren't able to pay off their debt.
There are some basic spending patterns in the United States that can give us a fairly good bird's-eye view of where all our finances are going. The average American family spends $2,000 each month paying their bills, according to CBS MoneyWatch, and this usually makes up about a third of the family's budget.
These Are the Top 10 Bills Paid Each Month in the U.S.
If you think about your biggest expenses each month you probably think about paying rent, your car payment, and insurance. That checks out pretty accurately. Here are the top 10 bills being paid each month in our country, as well as the median amount that households are paying.
Auto Loan: $433
Auto Insurance: $196
Health Insurance: $123
Cable & Internet: $114
Mobile Phone: $113
Alarm and Security: unknown
Life Insurance: unknown
The most popular way to pay for these bills is through bank transfer, although about 20% of households are paying for rent with cash these days. Each month, roughly 15% of people delay a bill payment, but that number was almost 40% in 2020 at the height of the coronavirus pandemic. Out of those who had to delay payments, more than two-thirds reported that they decided to put off paying a utility bill.
Some of These Numbers Will Go Up Even More Because of Inflation
There's a record-high number of Americans quitting their jobs, which economists say is strongly affecting inflation. It doesn't seem like this will slow down anytime soon, though, so inflation is only going to grow. Unfortunately, this means that your bills will very likely get more expensive in the near future.
Jim Kreyenhagen, head of marketing and consumer services at Doxo, told CBS MoneyWatch that more inflation is coming. It probably won't affect your mortgage or home insurance, but it will boost your utilities, car insurance, and maybe even rent.
"We think utilities are going to go up – we're already seeing some indication of that," he said. "That's driven by fuel prices." Now's the time to be frugal with your money and save every bit that you can.