What Was The Cost of Living in 1957?

The 1950s are remembered fondly as a simple, nostalgic time in American history. After the war, the economy boomed and allowed the average family to enjoy relative economic prosperity. However, Americans still had to work hard to afford the cost of living in 1957 and save up for major purchases like homes and cars. Let’s take a closer look at how households spent their money in 1957.

The Cost of Living in 1957

Due to inflation, consumer goods cost more now than they did in 1957. Back then you could purchase a gallon of gas for just $0.23, a box of cereal for $0.18, and a car for roughly $2,000. However, households didn’t have much disposable income because wages were significantly lower. The average income was only $4,600 per year, which many people earn in a month today.

To help you get a better sense of the cost of living in 1957, here’s an overview of a typical household budget.

Cost of Groceries in 1957

In 1957 the cost of groceries varied depending on where you lived. But the average prices below (which were gathered from The People History) will give you an idea of how much families spent on food back then.

By today’s standards, these prices seem like a steal, but groceries were a big expense for families in the 50s. At the beginning of the decade, the average household was spending roughly 30% of its income on food.

Could you imagine spending that much of your salary on groceries? Today the average American only spends 11.3% of their budget on food, making groceries a much more manageable expense!

Cost of Major Household Items in the 1950s

To get a full picture of the cost of living in 1957, let’s take a look at the cost of other necessities like houses and cars.

During the 50s, the average household spent roughly 22% of its budget on housing and 15% on transportation. The suburbs grew rapidly during this decade, which increased car dependence and transportation spending.

Although $2,000 for a car sounds cheap, keep in mind that vehicles have to be repaired and replaced more often. Households had to budget carefully to afford transportation and housing, especially considering that they only earned an average of $4,600 per year.

Cost of Having Fun in the 1950s

Although necessities like groceries and vehicles were costly, families in the 50s still had some disposable income. Here are a few of the things they spent their entertainment budget on.

Sewing was a common hobby for women and girls in the 50s. Their seamstress skills allowed them to copy high-fashion designs from Paris at a fraction of the cost. Families also enjoyed gathering around the radio in the evenings to listen to popular shows like The Lone Ranger. Although TV sets were available, radios were more affordable for the average household. Kids spent their free time playing with friends in the neighborhood and riding bikes, which used to cost around $15.

The cost of living in 1957 may seem very low compared to today. However, when you dig into the average household budget, you realize families didn’t have lots of disposable income and still had to stretch their pennies.

What do you think about the cost of living in 1957? Share your thoughts in the comments below.

Read More 

What Was The Cost of Living in 1962?

Cost of Living in 1972

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.