Saving & Spending
Spending and Saving Through the Years
Chase is celebrating National Savings Week January 22nd through January 28th. Our series aims to provide tips and insights for saving today, tomorrow, and in-between.
The majority of Americans may feel like their income isn't keeping up with the cost of living — that's according to the Pew Research Center — but the fact is our money goes a lot farther than it used to when it comes to items like food and clothing.
In 1960, the average family devoted 64 percent of its annual spending to housing, food and clothing, according to the U.S. Bureau of Labor Statistics. Of that, 30 percent went toward housing, 24 percent to food and 10 percent to clothing. By 2014, those necessities only accounted for about half of spending. The cost of housing didn't change as much as you might think: it accounted for 33 percent in 2014. But food only accounted for 13 percent of spending, and clothing for 3 percent.
Although it's hard to measure, we also get more for our money: consumers have access to fast fashion and more durable fabrics, and we have more meat and more variety in our diets. If we feel worse off, it may be at least partly because our definition of "necessities" has come to include laptops, smartphones, and cable television — which our grandparents couldn't have imagined.
Donna Freedman, a former newspaper journalist, created the Smart Spending and Frugal Nation blogs for MSN Money. She also writes for websites like Get Rich Slowly and NerdWallet.