Estimated African American Consumer Spending by Category (% of Total Spend)
Context: Black households, on average, allocate higher shares to essentials (housing, food, transportation) and lower shares to asset-building categories (insurance, pensions) compared to white households — largely due to income, wealth gap, and cost burden realities.
Core Living Expenses (≈ 55–60%)
Housing – 32%
- Rent/mortgage, utilities, maintenance
- Higher rent burden → larger share vs. national average (~30%)
Transportation – 15%
- Car payments, insurance, gas, public transit
- Reliance on vehicles + commuting costs
Food – 13%
- Groceries + dining out
- Higher percentage of income spent on food than national average
Health, Protection & Stability (≈ 12–14%)
Healthcare – 8%
- Insurance premiums, prescriptions, out-of-pocket care
Personal Insurance & Pensions – 4%
- Life insurance, retirement, financial products
- Lower share due to access + affordability barriers
Lifestyle, Culture & Consumption (≈ 18–20%)
Entertainment – 5%
- Media, streaming, concerts, sports, events
Apparel & Services – 4%
- Clothing, footwear, haircuts, beauty services
Personal Care Products & Services – 3%
- Hair care, grooming, toiletries
- Black consumers over-index here vs. national average
Recreation (Travel, Hobbies) – 3%
Tobacco & Alcohol – 2%
Education, Giving & Household (≈ 8–10%)
Education – 3%
- Tuition, books, training
- Often constrained by rising costs
Household Furnishings & Equipment – 3%
- Furniture, appliances, home goods
Gifts & Charitable Donations – 2%
- Strong giving culture despite income gaps
Communication & Other (≈ 5–6%)
Communication – 4%
- Mobile, internet, devices
- High smartphone reliance
Miscellaneous Expenses – 2%
- Fees, personal services, other
Quick Summary Table
| Category | % of Spend |
| Housing | 32% |
| Transportation | 15% |
| Food | 13% |
| Healthcare | 8% |
| Insurance & Pensions | 4% |
| Entertainment | 5% |
| Apparel & Services | 4% |
| Personal Care | 3% |
| Education | 3% |
| Recreation | 3% |
| Household Furnishings | 3% |
| Communication | 4% |
| Gifts & Charity | 2% |
| Tobacco & Alcohol | 2% |
| Miscellaneous | 2% |
(Totals ≈ 100%)