Thursday, March 14, 2013

Landline Phone Spending Trends

Not long ago, residential phone service was one of the biggest expenses in the household budget. In 2000, landline service ranked 12th among items on which the average household spends the most. Back then, the average household devoted $989 to residential phone service (in 2011 dollars).

By 2011, residential phone service had fallen to 27th place among items on which the average household spends the most. Cell phone service ranked 13th. The average household devoted just $381 to landline service and $826 to cell phone service.

Overall, 59 percent of households reported spending on landline service in 2011 versus 67 percent who spent on cell phone service. Here is the percentage of households who spent on landline phone service during an average quarter of 2011, by age of householder...

Under age 25: 14%
Aged 25 to 34: 31%
Aged 35 to 44: 52%
Aged 45 to 54: 64%
Aged 55 to 64: 72%
Aged 65-plus: 84%

Source: Bureau of Labor Statistics, Consumer Expenditure Surveys

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