What Was The Cost of Living in 1962?

In 1962, the Beatles released their first single in the UK and Spider-Man made his debut in the Amazing Fantasy #15 comic. It’s hard to believe that over 60 years have passed since that important time in history! A lot has changed since then, including the price of consumer goods. The cost of living in 1962 was much lower than it is today. Believe it or not, $100 in 1962 had the same purchasing power as $1,022 does today.

Although consumer goods had lower price tags back then, people also earned less. The average annual income was only about $6,030 in 1962. Here’s how a typical family would spend their wages.

The Cost of Living in 1962

Inflation averages 2% per year, so it’s no surprise that prices have risen significantly since 1962. That year gas was $0.27 a gallon, a can of Campbell’s soup cost $0.15, and you could buy a Ford Mustang 2-door hardtop for just $2,368.

Those prices may seem like a great deal compared to what we pay today. But you have to remember that salaries were much lower and matched the cost of living in 1962. The average annual income back then was just $6,030, so you would’ve had to save up for that Mustang for a while!

Families also had to shop smart and stretch their dollars at the supermarket. In 1960, consumers spent a whopping 17% of their income on groceries, compared to just 9.5% in 2019. Let’s take a closer look at the cost of groceries in the 60s compared to today.

Cost of Groceries in the 1960s

In 1962, grocery costs varied depending on where you lived, just like they do today. But we can still learn about the financial realities of the 60s by taking a look at average grocery prices. The 1960s prices featured below were gathered from The People History and today’s prices came from St. Louis Fed.

As you can see, supermarket prices are a lot higher today. But we’re still spending a lower percentage of our incomes on food than families did back in the 60s. Even though grocery prices rose significantly in 2022, Americans only spent 11.3% of their take-home salary on food that year, which puts things in perspective!

Cost of Household Items in the 1960s

Groceries were far from the only cost families had to fit into their budgets in the 60s. They also had to pay their mortgage or rent, put gas in the tank, and save up for big purchases like college tuition and cars. Here’s an overview of how much those major expenses cost in 1962.

As you can see, people in the 1960s still had to methodically save for major purchases like homes and cars. Homes cost a little over two times the average annual income and were significantly smaller than the houses we buy today. Purchasing a car was no small feat either. A typical car costs just under half of the median salary.

Cost of Having Fun in the 1960s

Families had to be financially responsible for buying what they needed, from groceries to gas to homes. But luckily they still had some disposable income left over for fun. Check out the chart below to look at typical entertainment prices from the 60s. All data came from MeTV.

Although candy bars were much cheaper in the 60s than they are today, some prices have stayed roughly the same. You can still find record players, footballs, and packs of darts for about the same price as people paid in 1962. So in real terms, these items are cheaper today than they were back then, which is surprising!

What do you think about the cost of living in 1962 compared to today? 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.