Health care is the largest and fastest-growing expense in the United States, according to a recent Consumer Bankers Association (CBA) white paper. In 2024, healthcare expenditures reached more than $24,000 per household, surpassing shelter as the single largest expense category.
The white paper analyzes how Americans’ household income and expenses have evolved over the past decade in four major categories: housing, healthcare, food, and auto. The paper also examines various financing charges and concludes credit card interest, overdraft, or other bank fees represent a small share of overall household spending.
“Four spending categories both account for a large share of household budgets and have grown substantially over time: shelter, healthcare, food, and vehicles,” the paper’s author economist Dr. Alexei Alexandrov said. “Any policy solution aiming to make a notable dent in Americans’ expenses must address at least one of these four structural cost drivers.”
Other findings include:
In 2024, total household expenditures were nearly $80,000.
Average annual credit card interest payments were approximately $1,180 per household.
Lower-income households face persistent gaps between income and expenses. Those in the bottom two income quintiles spend more than they earn annually, and credit cards serve as a primary financier of routine and unexpected costs.
Nearly 40 percent of households have less than $1,000 in savings, making them vulnerable to income disruptions or unexpected expenses.