The cost of living in the 1950s compared to the beginning of 2020 is drastically different. Items, such as food and drinks did not cost a lot as they do now. Most things at the time only cost money in cents, and now all items in the United States cost money in dollars.
How much would daily life cost in the 1950s?
To be honest, not much. 70 years later since the ‘50s began, the inflation rate has gone WAY up, and I mean… WAY UP! Example: If you bought a hamburger in 1950, it only cost 12 cents, and as of last year, it went up to $3.81. That’s about 6 times more!
The financial struggles: then and now.
In 1950, the US dollar had the buying power of $9.87 today. This would make $10,000 of insurance money received back then $98,749.58 today.College tuition at the University of Pennsylvania was only $600 dollars. Now, college tuition at most American education institutions (colleges/universities) is more than $10,000 dollars. This means that back then, there were few people applying for financial aid. Now, there is $1.6 trillion in student loan debt in the United States and most students find themselves applying for financial aid, such as scholarships.
Housing and Income
The cost of a house in the 1950s was about $15,000, compared to $200,000 today. The younger family paid $3,500 in down payment and $125 a month. On the other hand, the average household income was $3,300.00, which was $200 up in 1949. The latest data is from 2017, when the average income stood at $61,372, according to the US Census Bureau. The minimum wage at the time was only 75 cents per hour, and now it is only $7.50 per hour.
Cars & Clothing
In 1950 the average cost of a new car was $1,510.00 and by 1959 was $2,200. Now, it is nearly $14,000. The rise in cost of cars are mostly due to new electronic and safety features.On the other hand, it is likely that a younger family would have a low clothing budget due to their economic status, and would often wear old and reused clothes. Most clothes cost below $5.00, while a men’s wool suit cost $45.
Food and Gas
A gallon of gas cost $0.27 a gallon, compared to $2.67 today. The average American family spent a little more than $800 on food, compared to more than $8,000 today. A hamburger would cost 12 cents back then, compared to $3.81 today. This would estimate to about 22% of the average family income in 1950.
Additional: The Economy and Living in the age of COVID-19
As COVID-19 is rapidly spreading across our nation, the US economy is also in big trouble. When people cannot go about their daily lives, businesses and corporations have to temporarily shut down, or either lay off, or furlough their employees, and stocks are plummeting. The prices of oil have dipped below zero, and there is a nationwide meat shortage to the closure of several meat plants. This is bad for business and our lives because the businesses, as well as us, cannot make money for a living. On another note, living without seeing our friends is a new normal that we all don’t want to live with, and it’s very challenging.
Why we should be aware of our spending habits.
As time goes on, we need to be aware of what we’re spending and how much that item costs, and it’s a huge factor to not get into debt. Budgeting is also very important so that you don’t keep getting unnecessary items. My advice to you is to buy what you need, and not want.
Perri Schwartz is a BBG from B’yachad BBG #2495 in Greater Atlanta Region #55. She has photographic memory, loves to fight for what she belives in, and hopes to be a professional journalist.
All views expressed on content written for The Shofar represent the opinions and thoughts of the individual authors. The author biography represents the author at the time in which they were in BBYO.
FAQs
Consumer prices
The price of everything, from a sack of flour to a winter coat, keeps climbing every year. Since 1970, the Consumer Price Index saw a 500%-plus increase. Even after adjusting for inflation, today's dollar buys a whole lot less than it did 50 or even 25 years ago.
How has the cost of living changed? ›
Data from the Consumer Price Index (CPI), a key metric from the Bureau of Labor Statistics used to measure inflation, show that prices increased 3.2 percent between February 2023 and February 2024. This is a significant dip from the staggering 9.1 percent peak in June 2022 — the highest in more than 40 years.
How much was the cost of living in the 1950s? ›
A gallon of gas cost $0.27 a gallon, compared to $2.67 today. The average American family spent a little more than $800 on food, compared to more than $8,000 today. A hamburger would cost 12 cents back then, compared to $3.81 today. This would estimate to about 22% of the average family income in 1950.
What was the cost of living in the 1970s? ›
1970 COST OF LIVING New House: $23,450 Average Income: $9,400 New Car: $3,450 Minimum Wage: Movie Ticket: Gasoline: 36 Postage Stamp: cents hour $1.55 cents Sugar: 39 cents Ibs 62 pound Coffee: 59 I… America's best pics and videos is fun of your life.
Is the US getting too expensive to live in? ›
The Bureau of Labor Statistics reported that the average US household's monthly expenses jumped from $5,111 in 2020 to $6,081 in 2022.
Why is life so expensive right now? ›
Supply chain bottlenecks and soaring demand for goods and services following the re-opening of the economy after the pandemic-related lockdowns sent prices for goods and services skyrocketing to four-decade highs last summer. But over the last few months, inflation has been decelerating.
Was life cheaper in the 80s? ›
“Things were better then!” Eh, in some ways, yes, in other ways, no. Sure, housing was cheaper, but that is partially because houses were considerably smaller. In 1980, the median size of a new home in the U.S. was 1,595 square feet. Today the median size of a new family home is 2,312 square feet.
How bad is inflation right now? ›
US Inflation Rate is at 3.36%, compared to 3.48% last month and 4.93% last year. This is higher than the long term average of 3.28%.
Will food prices go down in 2024? ›
The rate of food inflation for food at home is expected to slow as the year goes on, but prices in most categories will still rise. The U.S. Department of Agriculture has released its forecast for 2024 that shows all food prices are expected to increase 2.5% while food-at-home prices are predicted to go up 1.6%.
How much is a loaf of bread in 2024? ›
Bread now costs over $2 per pound — $2.03, to be exact, as of January. Last January, the same pound cost just $1.89 for a year-over-year increase of 7.7%. A standard loaf of sliced white bread weighs 20oz, which means a loaf costs about $2.54, so $20 can buy you just shy of eight loaves.
In the 1950s, the price of toilet paper varied depending on factors like location, brand, and quality. On average, a single roll of toilet paper cost around "25 to 30 cents". However, it's important to note that the actual price could differ across regions and based on the specific product being offered.
How much was milk in 1950? ›
1950: 83¢ per gallon
The price of milk skyrocketed by 20 cents in five years. Serve a scoop of Tuna Noodle Casserole—or any other vintage 1950s recipes—with that half-pint of milk.
How much was toilet paper in 1970? ›
Toilet paper
| Decade | Toilet paper (rolls per $1) |
|---|
| 1940s | 6.6 |
| 1950s | 8 |
| 1960s | 11 |
| 1970s | 6 |
9 more rowsThe Price of Bread
| YEAR | Cost of 1 lb. of Bread |
|---|
| 1960 | $0.23 |
| 1970 | $0.25 |
| 1980 | $0.50 |
| 1990 | $0.75 |
5 more rowsIn 1970 which was 47 years ago the cost of co*ke was only 5 cents.
Why is everything more expensive now than in the past? ›
Inflation has been brutal over the past few years. After decades of running below 3%, starting early 2021, the Consumer Price Index increased rapidly as the economy opened back up after Covid-19 related lockdowns.
How much has the cost of living gone up in the last 3 years? ›
In 2023, the average rate of inflation was 4.1%. In 2022, the average rate of inflation was 8.0%. In 2021, the average rate of inflation was 4.7%. In 2020, the average rate of inflation was 1.2%.6.
Has the cost of living gone up since 2000? ›
Personal Consumption Expenditures (PCE) Inflation
The PCE Price Index changed by 2.08% per year on average between 2000 and 2022. The total PCE inflation between these dates was 57.19%. In 2000, PCE inflation was 2.53%. This means that the PCE Index equates $5.38 in 2000 with $8.46 in 2022, a difference of $3.08.
How much will it cost to live in 2000 compared to 2023? ›
Chained inflation averaged 2.25% per year between 2023 and 2000, a total inflation amount of 66.74%. According to the Chained CPI measurement, $100 in 2023 is equal in buying power to $166.74 in 2000, a difference of $66.74 (versus a converted amount of $56.51/change of $-43.49 for All Items).
