It's remarkably consistent from Gen Z to the Silent Generation as a percentage of total spending. 

Answer: Housing (from 32-37% of average expenditures)

Questions:

• What are the different ways that people pay for housing?  
• Based on this information, what might be a good rule of thumb when it comes to housing costs? You should try and keep housing costs _____________ of your total budget. 
• Your friend is looking for an apartment to rent and the cost is $2,000/month while their monthly pay is $4,000/month. If they asked you for your opinion, what would you tell them?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. 

Behind the numbers (Visual Capitalist interactive): 

While spending habits vary depending on the age group, there are some categories that remain fairly consistent across the board. One of the most consistent spending categories is housing—it’s by the far the biggest expense for all age groups, accounting for more than 30% of total annual spending for every generation.

Another spending category that’s surprisingly consistent across every generation is entertainment. All generations spent more than 4% of their total expenditures on entertainment, but none dedicated more than 5.6%.

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Looking for a fun budgeting activity during the Thanksgiving season? Check out this teacher favorite: Plan a Friendsgiving Dinner. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.