What Was The Cost of Living in 1956?

Due to the inflation we’ve experienced over the past couple of years, cost of living has become a hot topic. As a result, you may be curious to know what the cost of living was like in decades past. The 50s is an interesting time in history to look back on as the economy was booming and wages were rising. Let’s take a trip down memory lane and examine the cost of living in 1956.

The Cost of Living in 1956

Many important historical events happened in 1956. The Suez Crisis occurred, transatlantic telephone service began, and Sudan became an independent nation. Elvis Presley even had his first hit song that year. But what was the cost of living in 1956 like?

Back then gas was only $0.22 a gallon, a loaf of bread cost $0.12, and the average monthly rent was just $36. However, the average wage was significantly lower than what Americans earn today, clocking in at just $4,410 per year.

Although wages were on the rise and the cost of consumer goods was falling, households still had to practice financial responsibility to meet all their needs. Here’s an overview of how families spent their earnings in the 50s.

Cost of Groceries in 1956

Did you know that the average family in the 50s spent a third of its household budget on groceries? This was actually an improvement from the share of income spent on groceries in 1900, which was a whopping 43%. Food production got cheaper in the 50s due to agricultural advances, but groceries were still much more expensive than they are today. Now households only spend about 11% of their budget on food, which makes it easier to afford a nutritious diet.

Take a look at the average cost of grocery staples like milk and bread during the 50s (which came from The People History). Although the prices below seem cheap at first glance, don’t forget how much households were spending on food as a percentage of income!

Cost of Household Goods in the 1950s

To fully understand the cost of living in 1956, we also have to cover the average prices of major necessities like homes and cars.

Although buying a car for $1,970 may seem like a steal, remember that salaries were much lower in the 50s. The average annual income was only $4,410 and 30% of it was spent on food. So families had to budget carefully to save up for major purchases like homes, vehicles, and televisions.

Cost of Entertainment in the 1950s

During the 50s, consumer goods became cheaper and Americans gained higher incomes and more purchasing power. So although necessities took up the majority of the household budget, there was still some disposable income left over to enjoy. Americans spent just under 5% of their income on entertainment in the 50s, which is comparable to what households spend on fun today. 

Check out the prices of popular 1950s toys and entertainment purchases below, which were gathered from MeTV.

About 20 million Americans bowled regularly during the 50s, making it one of the most popular pastimes. Western TV shows and movies also rose to prominence, which made the official Wagon Train toy a sought-after gift. Pocket radios came on the market during the 50s and allowed you to listen to popular radio shows like The Lone Ranger on the go.

What do you think about the cost of living in 1956 and how it compares to today’s prices? 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.