Budgeting Statistics for 2026

Mar 17, 2026

Adam McCann, WalletHub Financial Writer

Mar 17, 2026WalletHub Financial Writer

Budgeting Statistics:

Average Household Income: $104,207
YoY Change: 2.36%
Average Household Expenditures: $77,158
YoY Change: -0.16%
Most Used Budgeting Method: Pen & Paper
Most Common Budgeting Challenge: Increasing Costs

More than 86% of people have a budget, and 83% of them say that increasing costs are the biggest challenge they face when trying to stick to that budget. In fact, the average American household spent $77,158 in 2024 – a whopping 44% increase from 2014.

With rising costs, having a budget is essential for effectively managing your finances and ensuring you are not spending more than your income. Below, you can check out more budgeting statistics and see how you compare to the average American household.

Table of Contents

Budgeting Stats by Age

Staying on Budget

While most people ages 18-29 (61%) and 59+ (64%) stay on budget, a significant number of 45-59 year-olds (39%) exceed their budget, and many people who are 59+ (25%) don’t use a budget at all.

Budgeting Methods

27% of young adults (18-29) prefer budgeting apps, while 39% of middle-aged adults (30-44) favor spreadsheets, and 43% of older adults (45-59) stick to pen and paper.

Biggest Budgeting Challenges

About 81% of people age 59+ struggle with increasing costs, and more than 50% of people across all age groups say unexpected expenses throw off their budgeting efforts.

How People of Different Ages Cover Budget Shortfalls

Most people cover budget shortfalls by taking money from savings, especially those who are 18-29 years old (68%) and 59+ (73%). Credit cards are most popular among people ages 30-44 (34%).

Source: Budgeting Survey, WalletHub, 2025

Budgeting Stats by Income

Staying on Budget

Medium-income earners are most likely to stay on budget (66%), followed by high-income earners (60%), while low-income earners are more likely to lack a budget (20%).

Budgeting Methods

Higher-income individuals prefer spreadsheets (45%), and medium-income earners also prefer spreadsheets (38%).Low-income individuals rely more on pen and paper (49%) or apps (23%) for budgeting.

Biggest Budgeting Challenges

Increasing costs affect all income groups, with high-income earners facing it the most (87%), while low-income individuals also struggle with insufficient income (57%) and managing expenses (19%).

How People at Different Income Levels Cover Budget Shortfalls

High-income earners primarily use savings (67%), while low-income earners turn to family (23%) or credit cards (31%).

Source: Budgeting Survey, WalletHub, 2025

Budgeting Stats by Gender

Staying on Budget

More men stick to their budget than women, and more women don’t have a budget at all.

Budgeting Methods

39% of women prefer using pen and paper for budgeting, while 36% of men favor spreadsheets, and they have similar app usage (18% for women, 17% for men).

Biggest Budgeting Challenges

Increasing costs are the biggest budgeting challenge for 78% of women and 70% of men, while unexpected expenses are the top concern for 59% of women and 48% of men.

Covering Budget Shortfalls

More men use savings to cover their budget (70% vs. 58% for women), while more women use credit cards (33% vs. 23% for men).

Source: Budgeting Survey, WalletHub, 2025

Household Income & Expenditures

Average Household Income & Expenditures

The average household income before taxes grew by 56% from 2014 to 2024, while expenditures increased by 44%.

Source: U.S. Bureau of Labor Statistics, 2025

Household Expenditures by Major Category

Spending on housing doubles transportation spending and is 16.7 times greater than spending on education.

Housing continues to be the largest consumer spending category, accounting for 33% of total annual spending in 2024, compared to just 2% for education.

Source: U.S. Bureau of Labor Statistics, 2025

WalletHub Budgeting Studies

States with the Best and Worst Budgeters

States With the Best Budgeters	States With the Worst Budgeters
Hawaii	Mississippi
Washington	Louisiana
Massachusetts	Oklahoma
Wisconsin	Alabama
Minnesota	Georgia

Learn more about states with the best and worst budgeters.

Cities with the Best and Worst Budgeters

Cities With the Best Budgeters	Cities With the Worst Budgeters
Seattle, WA	Gulfport, MS
Boston, MA	Jackson, MS
Fremont, CA	Shreveport, LA
Honolulu, HI	Charleston, WV
South Burlington, VT	Huntington, WV

Learn more about cities with the best and worst budgeters.

Questions & Answers(6 questions)

Editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Upvotes

What are the best budget apps?

Dmitriy Fomichenko, President, Sense Financial

I recommend this online tool:

https://www.daveramsey.com/everydollar/

View more answers

Upvotes

How much money should I keep in my savings account?

Kathleen Cole

You should keep three to six months' living expenses in your savings account, plus a bit extra. Most experts recommend saving enough money to live on for the amount of time it would take you to find a new job if you were to lose yours and adding a little more for emergencies.

How to Determine How Much You Need to Keep in Savings

Split your purchases into two categories: fixed and...

View more answers

Upvote

What does the "Petty Cash" section do on my WalletHub dashboard?

WalletHub

Petty Cash is a new feature designed to assist you with budgeting. It allows you to manually track funds that aren't linked to a specific account, like the cash you keep in your wallet or have set aside for minor or incidental expenses. You can manually add transactions to monitor how this money is spent or simply update the balance to reflect what you currently have. Additionally, you can change the name of this account...

Upvotes

How can I get out of debt with no money and bad credit?

Grace Enfield, Content Writer

You can get out of debt with no money and bad credit with the help of a debt management program or a debt consolidation loan for bad credit, especially if you have some income despite not having any money saved. You could also consider a loan from a friend or family member, and careful budgeting will go a long way, too.

How to Get Out of Debt with No Money and Bad Credit

Upvotes

What are the pros and cons of savings accounts?

Lauren Smith, WalletHub Staff Writer

The pros of a savings account are guaranteed interest earnings, easy access to your money, and FDIC/NCUA insurance to protect your funds. The cons of a savings account are low rates compared to other investment opportunities, the risk of inflation eroding your purchasing power, and transaction limits.

Pros and Cons of Savings Accounts

Pros of Savings Account	Cons of a Savings Account
...	Low interest rates

Upvotes

How many savings accounts should I have?

Lauren Smith, WalletHub Staff Writer

You should have at least two savings accounts, one for short-term goals and the other for long-term savings. Also consider opening and maintaining a savings account for each of your savings' goals, like an emergency fund, retirement, or a down payment for a house.

The average American has five bank accounts, according to a study by Mercator Advisory Group. Having multiple accounts can help you budget more efficiently and create a structure to reach...

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