19 Hurdles Making Saving Money in the US a Nightmare

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By Jane Andrews

Many jobs in the United States pay very well. But even still, it’s extremely difficult for U.S. citizens to save money. You’ll find 19 reasons why this is so hard in this article.

Taxes

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Taxes in the U.S. are very high, amounting to thousands of dollars a year. According to the National Priorities Project, “the average taxpayer in the United States paid $13,367 in federal income taxes in 2022.” Spending such a large amount of money on taxes makes it difficult to save.

Health Insurance

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Having a good health insurance plan in the United States is essential. Free health care does not exist, and medical appointments and treatment are very expensive. U.S. citizens have to spend a lot of money each month on health insurance, and this prevents them from being able to save.

Distance

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The United States is a very vast country. Getting from one state to another can take hours. Because the country is so big, it can cost a lot of money to travel around. The high price of gas in the country makes travel even more expensive.

Society’s Opinions

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It can be hard for U.S. citizens to save money because of society’s opinions. People end up spending more money than they can afford just to keep up appearances and to be able to show off to others. This lands them in debt and makes saving money completely impossible.

Car Insurance

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Another reason Americans find it difficult to save money is because of the high cost of car insurance. Forbes says that “the average cost of car insurance is $2,150 for full coverage and $467 for state minimum coverage.” But this price per year can vary depending on which state you live in, your gender, and your age.

Billboards

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In large cities in the U.S., billboards are everywhere. They’re always advertising products in a way that makes them seem irresistible. The temptation to buy things is on every corner, and many people give in and spend money they don’t have on things they don’t need.

Public Transportation

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After housing, public transportation is one of the highest household expenditures in the U.S. Many families are spending hundreds of dollars each month on public transportation, and this eats into a lot of their monthly income. If public transportation wasn’t so expensive, they would have more money to save.

Rent

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Rental market trends from Apartments.com show that “the average rent in the United States is $1,499/month.” Rent is the biggest household expenditure for many Americans. Spending over a thousand dollars a month on rent leaves them with little to save at the end of the month.

Fast Fashion

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Fast fashion has become very popular in the U.S. Since the clothes are so cheap, people don’t think twice before spending money on them. But these kinds of clothes aren’t hard-wearing and quickly need replacing. As a result, you end up spending more money on clothes than you would if you had bought better-quality items.

Technology

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New and improved smartphones are always coming to the market. In the U.S., flagship smartphones and other technology receive a great deal of media attention. All the attention makes these devices seem like necessities that you can’t live without. Many people spend money on technology that they can’t afford.

Fast Food

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Fast food is relatively inexpensive as a one-off meal, but if you’re going to buy it frequently, it soon adds up. The figures from IBISWorld show that “there are 200,859 fast food restaurant businesses in the U.S. as of 2023, an increase of 0.8% from 2022.”

Groceries

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Grocery shopping in the United States has become very pricey. Items that used to be relatively cheap, such as grains, cereals, and eggs, have now skyrocketed. Groceries are necessities that we can’t live without. Some Americans are spending so much on groceries that they don’t have anything left to save at the end of the month.

Tuition

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University tuition in the United States is very expensive. But it’s not the tuition alone that’s pricey. You also have to think about the cost of staying on campus or traveling to and from campus. Buying books, study materials, and supplies also costs a lot of money.

Cities

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Living in a big city in the U.S., such as Manhattan, will make your life a lot more expensive. The price tags on pretty much everything in this affluent city are higher just because you’re buying it there. Vendors aren’t afraid to raise their prices because they know that people will still buy their things.

Parking

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In many cities in the U.S., it’s almost impossible to find free parking spots. Because of this, families are forced to pay for expensive parking tickets every day of the week. Parking tickets can cost families hundreds of dollars a month and leave them with little left over.

Entertainment

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Entertainment in the U.S. is very expensive. Going to the movies, to a concert, or to the theater on the weekend is a lot of fun but very pricey. Even after booking in advance and looking for discounts, a family of four could easily spend over $100 on one outing.

Convenience Stores

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Goods from convenience stores are always more expensive than those from large grocery stores. But because the U.S. is so vast, many people can’t always make it to a supermarket when they need something. They end up buying overpriced items from convenience stores and spending too much money.

Mortgage

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Paying for a mortgage in the U.S. is not easy. Depending on which U.S. city you live in, you could end up paying a lot for a very small space. Mortgage payments can be overwhelming for many families, and as a result, they’re looking for cheaper options in suburban areas of the U.S.

Organic

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In an attempt to eat better quality food that has been sourced locally, many Americans strive to buy as many organic products as possible. But organic food items are always so much more expensive than non-organic items. Spending extra money like this on groceries makes shopping very pricey.

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