How Cost of Lifestyle Differs From Cost of Living in the US

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If you’re wondering how the cost of lifestyle differs from the cost of living in the U.S., it’s important to understand the difference between the two. Cost of living is the money needed to cover your basic living expenses, such as food and shelter. Cost of lifestyle is the standard of living that you wish to maintain and includes expenses for things that are nonessential, such as wellness, beauty, travel and fashion.

Both the cost of lifestyle and cost of living will be different for different people. The wealthier someone is, the more able they are to afford a higher cost of living and lifestyle if they so choose.

Here’s more on cost of lifestyle vs. cost of living, according to data compiled by Credello.

Also see the living wage needed for a single person in every state.

How Much Money Does It Take To Be Wealthy?

There’s no doubt that being wealthy helps you afford a higher cost of lifestyle. But how much money does it take to be classified as wealthy?

It depends on which generation you’re speaking with, but the consensus among all generations is that it’s somewhere north of $1 million, according to Credello. Here’s the breakdown of how much money it takes to be wealthy, according to each of the following generations:

• Gen Z: $1.49 million
• Millennials: $1.94 million
• Gen X: $2.53 million
• Boomers: $2.63 million

Cost of Living Across the US

The cost of living across the U.S. varies depending on which state you live in. For example, cost-of-living expenses, which include food and shelter, are highest in the following states and range from 15% to 84% higher than the national average:

• Alaska
• Hawaii 
• California
• Oregon 
• Maine
• New Hampshire
• Vermont
• New York
• Massachusetts
• Connecticut

Cost-of-living expenses in these states range from 5% to 14.9% above the national average:

• Arizona 
• Washington
• Rhode Island
• New Jersey
• Delaware

Cost-of-living expenses range from 5% below to 4.9% above the national average in these states:

• Idaho
• Montana
• North Dakota
• Minnesota 
• Wisconsin
• Nevada
• Utah
• Colorado
• Pennsylvania
• Virginia
• North Carolina
• Florida

And finally, cost of living expenses range from 15% to 5.1% below the national average in the remaining 23 states, including Texas, Oklahoma, Kansas, Nebraska and South Dakota.

Shelter

Shelter is part of the cost of living. In some areas, it’s much more expensive to own a home. 

According to Credello, millennials and Gen Zers either have opted to rent or have gone into debt due to expensive housing costs.

In 2020, the median U.S. home sale price was $329,000. However, as of Q4 2023, the median sale price for U.S. houses was $417,700, according to the Fed.

California, Oregon, Washington, Colorado, Florida and Texas all have metros that have experienced more than 200% increase in home value inflation.

The Northeast and Southern regions of the U.S. have the most metro areas that have experienced between a 100% and 200% increase in inflation.

Food 

Here’s how much people in the U.S. spend annually on groceries — otherwise known as “food at home.”

• Gen Z: $3,046
• Millennials: $5,008
• Gen X: $6,516
• Baby Boomer: $5,112
• Greatest Generation: $4,001

Cost of Lifestyle

The cost of lifestyle includes things that are nonessential — in other words, things that are not needed but make your life better.  

Wellness and Beauty

Gen Zers and millennials spend the most on wellness and beauty expenses. Next are Gen Xers, followed by boomers, according to Credello. The silent generation did not report spending on wellness and beauty expenses. 

According to a survey by StyleSeat, Americans spend an average of $76 monthly on beauty and wellness — $46 and $30, respectively. Haircuts and facial skincare ranked as the biggest beauty expenses, while sleep aids and mental health services were the biggest wellness expenses.

Travel

Like wellness and beauty expenses, Gen Zers and millennials spend the most on travel. Next are Gen Xers, the silent generation and boomers — in that order.

When asked how much they were prepared to spend on travel, respondents reported the following: 

• $4,001 or more: 15%
• $3,001-$4,000: 20%
• $2,001-$3,000: 21%
• $1,001-$2,000: 20%
• $501-$1,000: 18% 
• $0-$500: 6%

Fashion

Once again Gen Zers and millennials lead the pack when it comes to spending on fashion, followed by Gen Xers, boomers and the silent generation.

While millennials prefer to shop in store, often visiting multiple stores to find the best price, 33% of Gen Zers report buying items based on an influencer’s recommendation. 

On average, Americans spend around $1,800 a year on clothing. 

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