What Was The Cost of Living in 1955?

Can you believe that 1955 was nearly 70 years ago? You can still catch reruns of popular shows from that year (such as I Love Lucy and Gunsmoke) on TV today. Although 1955 may feel like yesterday to some of us, times have changed, especially when it comes to money. The cost of living in 1955 was significantly lower than it is now.

Americans got by on an average income of just over $4,000 in 1955, which is a common monthly salary in 2024. Here’s an overview of how much consumer goods used to cost back then.

The Cost of Living in 1955

Everyone knows that there’s been inflation since 1955, but you may be shocked by how much prices have skyrocketed. For example, the price of a gallon of gas was about $0.21 in 1955. Today, a gallon costs an average of $3.07, which means the cost of gas has increased by over 1000%.

Food was a lot cheaper in 1955 too. A box of Ritz crackers only costs $0.32 and a rib roast would run you $0.29 per pound. However, the average annual salary was also significantly lower at just $4,210. So those prices weren’t as affordable for families back then as they seem to us now.

To help you get a fuller picture of the cost of living in 1955, here’s an overview of the prices of common consumer goods like groceries and cars.

Cost of Groceries in 1955

The cost of living in 1955 varied depending on which part of the country you resided in, just as it does today. However, we can still learn something by comparing typical grocery costs from the 1950s to today’s average prices. Check out the table below to see how much more a cart of grocery staples costs now.

As you can see, inflation can cause grocery prices to soar over the years. From 1950 to 2018, food costs rose by 3.44% per year on average. That’s why it’s so important to invest as much as you can for retirement. The cost of everyday goods when you retire will be much higher than when you started working, so you have to save diligently during your career.

Cost of Major Household Items in the 1950s

Of course, food wasn’t the only thing families had to buy in 1955. They had to figure out how to afford major costs like rent, tuition, and gas on lower salaries than Americans typically earn today. Take a look at the chart below to get an idea of how much major household goods

Although the cost of living in 1955 may seem downright cheap compared to 2024, remember that the average salary was just $4,210, which is about $46K in today’s dollars. Now the average annual salary in the US is around 60K for reference.

In the 50s, you’d have to save nearly half a year’s salary to buy a car. And college tuition would eat up almost a quarter of your annual income. So back then families had to prioritize their expenses and save up for major purchases, just like we do today.

Cost of Having Fun in the 1950s

Now that we’ve covered the prices of practical items like gas and groceries, let’s take a look at the cost of entertainment in the 1950s.

Dancing was a common pastime in the 50s. Although swing was the main dance style, square dancing was also popular at the time (hence the square dance dress listed above). Another fun fact is that McDonald’s was established in 1955. So back then you could enjoy a trip to the movies and golden arches just like we do today!

As you can see, the cost of living in 1955 is pretty different from today. But what hasn’t changed is the need for financial responsibility. In the 50s people had to save up to buy the things they wanted, which is still true in 2024.

What do you think of the cost of living in 1955? Share your thoughts in the comments!

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Vicky Monroe

Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.