Average household spending fell 8.6 percent between 2006 (the peak year) and 2013, after adjusting for inflation—from $55,926 to $51,100. According to a Demo Memo analysis of the Consumer Expenditure Survey, only 16 percent of the $4,826 decline in average household spending during those years was due to the aging of the population—a consequence of the large baby-boom population getting older, retiring, and reducing its spending.
Most of the decline in average household spending was due to budget cutting in all but one age group. Here is average household spending by age of householder in 2013 (and percent change since 2006; in 2013 dollars)...
Under age 25: $30,373 (-6.7%)
Aged 25 to 34: $48,087 (-12.5%)
Aged 35 to 44: $58,784 (-11.5%)
Aged 45 to 54: $60,524 (-9.0%)
Aged 55 to 64: $55,892 (-4.8%)
Aged 65-plus: $41,403 (+2.2%)
In dollar terms, households headed by people aged 35 to 44 cut their spending the most. In 2013, these households spent a substantial $7,632 less than they did in 2006, after adjusting for inflation.
Source: Bureau of Labor Statistics, Consumer Expenditure Surveys
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