A large difference between two values may not be statistically significant, while a small difference could be significant both the sample size and the variation among the values in the sample affect the relative error of the estimates.įor additional technical and related information, see Data for the nation, the four geographic regions of the U.S., and 22 metropolitan areas nationwide are available at Metropolitan definitions used in the survey are available at The metropolitan area discussed in this release is Los Angeles, CA Metropolitan Statistical Area which comprises Los Angeles, Orange, Riverside, and San Bernardino Counties in California. Statistical significance is concerned with our ability to make confident statements about a universe based on a sample. Users should also keep in mind that prices for many goods and services have changed since the survey was conducted.Ī value that is statistically different from another does not necessarily mean that the difference has economic or practical significance. estimates and year-to-year changes are more reliable than those for the metropolitan areas. Sample sizes for the metropolitan areas are much smaller than for the nation, so the U.S. However, expenditure shares, or the percentage of a household’s budget spent on a particular component, can be used to compare spending patterns across areas. Spending differences may result from different consumer preferences or variations in demographic characteristics, such as household size, age, or income levels. The terms household or consumer unit are used interchangeably for convenience.ĭifferences in spending among metropolitan areas may reflect differences in the cost of living, but they also may reflect other causes. The data in this release were averaged over a 2-year period, 20.Ī household in the CE survey is defined as a consumer unit which includes families, single persons living alone or sharing a household with others but who are financially independent, or two or more persons living together who share expenses. Additional informationĭata in this release are from the Consumer Expenditure Survey (CE), which the U.S. household spent 61.9 percent of its food budget on food at home and 38.1 percent on food away from home. Los Angeles-area households spent $5,049, or 56.9 percent, of their food dollars on food at home and $3,820 (43.1 percent) on food away from home. Food: The portion of a Los Angeles household’s budget spent on food, 13.1 percent, was not significantly different from the 12.5-percent U.S.Of the $10,681 in annual transportation expenditures in Los Angeles, 94.7 percent was spent buying and maintaining private vehicles this compared to the national average of 94.9 percent. Transportation: Los Angeles-area households spent 15.7 percent of their budget on transportation, not significantly different from the national average of 16.5 percent.Housing expenditures shares among the 22 published metropolitan areas nationwide ranged from 39.1 percent in New York to 31.8 percent in St. Among the 22 metropolitan areas nationwide for which data were available, Los Angeles was 1 of 10 areas to have a housing expenditure share significantly higher than the 33.8-percent U.S. Housing: This was the largest expenditure component for Los Angeles-area households and averaged $25,624.Highlights of the Los Angeles area’s 2019–20 spending patterns: Shares of average expenditures for selected major components in the United States and Los Angeles metropolitan area, 2019–20 Category Your emergency fund should consist of at least 3–6 months of living expenses.Chart 1. If you never see the money, you won't miss it. This is the most effective way to save money. Pay yourself first by putting a portion of your paycheck directly into the bank.Ways to Saveĭon't know where to start? Need ideas on new ways to save money. If you want to put more money into your savings, you must reduce your living expenses and/or decrease your debt. For example, if you spend 75% of your income on living expenses, reduce the amount you put into your savings by 5%. If you exceed these percentages in any category, reduce your spending in the other areas. 10% for debt (student loans, car payments, credit cards).5% for specific goals (vacation, car, school tuition, a new computer).5% for emergencies (car repairs, medical expenses, unemployment).10% for retirement ( IRA, 401(k), company pension).70% for living expenses (rent, food, clothing, gasoline).Divide your income in the following manner: One easy way to save is to follow the 70-20-10 Rule. Believe it or not, it IS possible to save for short-term and long-term goals, emergencies, and even retirement. Most people agree that saving is a good thing, but they find it difficult to do.
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