Official statistics show that the biggest expenditure item across the European Union is food, while in the United States it is housing. In Europe, leisure also accounts for more than in the USA.
In EU countries, almost half (46 percent) of households’ budget in 2025 was spent on food (16 percent), housing, water and energy (15 percent), and transport (15 percent), according to the EU statistical office, Eurostat.
In the United States, instead, half of the households’ budget in 2024 was allocated to housing (33 percent) and transport (17 percent), while food accounted for 13 percent, according to the US Bureau of Labor Statistics.
Doris Speer, a lawyer from New York and roots in Michigan, who has lived in France for more than 22 years, told The Local: “I am not surprised that housing takes a bigger portion of the budget in the US. For example, when you look at rental housing, landlords in many US cities have less restrictions on how much they can increase rent compared to many European cities.”
“But I am a bit surprised that the proportion spent on food is higher in Europe, because food prices seem to be lower here. This may have to do with differing inflation and the fact that fast food, which is cheaper, is more prevalent in the United States, while a lot of people in Europe tend more to cook at home or go to restaurants,” she added.
Speer is president of the Association of Americans Resident Overseas (AARO), a volunteer organisation founded in France in 1973 to advocate for the rights of Americans abroad as regards citizenship, voting, banking, financial reporting, taxation and social security/Medicare.
“Many cities in Europe have mass transportation systems, which exist only in few cities in the US. It is inexpensive to go around without needing a car. On the flip side, fuel cost is higher in Europe, although gas prices in the United States have also increased in the past year,” she explained.
Leisure is another area that takes a bigger proportion of the household budget in Europe.
Restaurant and accommodation services accounted for 10 percent of the expenditure, and another 8 percent was dedicated to recreation, sport and culture last year, according to Eurostat.
In comparison, in the US, 8 percent of the budget is allocated to ‘entertainment’.
“Overall, in Europe there is a stronger focus on social activities and more leisure time”, Speer continued. “By law, people work less hours – although they don’t work less – and have more holidays and social time.
In the US, when you take a new job, you are lucky to have two weeks vacations per year,” she added.
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