39% of American Families Spent $0 on Vacation, According to the Fed

For the first time, the Federal Reserve’s Survey of Consumer Finances asked American families how much they spent on vacations, and the answers show a sharp divide. The Fed found that 39% of families “spent nothing on vacations in the past 12 months.” The report says this group is made up “primarily” of “younger families, those with limited income and wealth, and those with health issues.”

The figure comes from the Fed’s report Changes in U.S. Family Finances from 2022 to 2025. That report also found that debt stress increased over the same period. The 2025 survey added vacation spending as a new question, and it covers the 12 months before each family’s survey interview. So the data shows a rolling year of real behavior, not a calendar year.

Typical Family Spent About $1,000 on Travel

Across all families, vacation spending averaged $4,200. The median was just $1,000. That gap tells you most of what you need to know. The median is the family exactly in the middle when everyone is lined up from lowest to highest spender. To find the average, you total every dollar and divide by the number of families, so a small group taking cruises, ski weeks, or overseas trips pulls it far above what most people actually spend.

The many zeros in the data push the median down even further. With so many families spending nothing, the midpoint lands close to the bottom. Among families that did travel, the Fed found spending averaged $7,000, with a median of $3,500. Even among people who took trips, the typical one was a modest getaway, not a luxury vacation.

Groceries Are Routine, Vacations Are Optional

The Fed set vacation spending next to food spending on purpose. Families spent an average of $7,700 on food at home, with a median of $6,000. Average and median sit fairly close together because everyone has to eat, so grocery bills vary much less from family to family than travel does.

Dining out falls in between. Food away from home averaged $3,500, with a median of $2,400. The report describes food as a measure of “routine spending,” while vacations capture “a more discretionary form of spending.” It also found vacations take up a growing share of total spending as income and wealth rise, which it calls “consistent with vacations being luxury spending.” Food takes up a shrinking share as families move up the ladder.

Income and Wealth Decide Who Gets Away

The report doesn’t give vacation dollar figures for each income group. It does say vacation spending was “much higher among families with higher income and wealth.” Its total spending figures show how wide that range is. Families in the bottom fifth by usual income spent $17,600 on all nonhousing expenses, while the top tenth spent an average of $138,800.

Wealth shows the same pattern. Spending in the bottom fifth by net worth averaged $23,400, compared with $136,000 for the wealthiest tenth. When a family’s whole budget goes to rent, groceries, and car payments, travel is the first thing to go. Financial strain grew, too. The share of families behind on loan payments rose from about 12% to almost 20%.

Where Your Family Fits

• Spent nothing: You’re in the 39%, a group that leans younger, earns less, or is dealing with health issues.
• Spent around $1,000: You’re right at the median for all families, including those who didn’t travel.
• Spent around $3,500: That’s the median for families who traveled, so it’s a typical trip budget.
• Spent $7,000 or more: You’re at or above the average for travelers, which puts you in the territory of higher-income and wealthier families.

How to Budget for Travel Without Falling Behind

First, set up a dedicated travel fund. Move a fixed amount into a separate savings account every month, with the typical traveler’s $3,500 median as a reasonable full-year target. Spreading the cost over 12 months keeps a trip from ending up on a credit card.

Second, look at your dining-out spending. Average spending on food away from home of $3,500 is close to what the typical traveling family spends on vacations. Cutting back on restaurants can fund a trip without touching your grocery budget.

Third, get current on your debts before you book. With nearly one in five families behind on loan payments, a vacation paid for with debt can end up costing far more than the trip itself.

Keep an eye on consumer confidence for clues about what comes next. The University of Michigan’s sentiment index was at 51.7 in August 2026, below the 60 mark associated with recession levels. If families stay that cautious, discretionary spending like travel tends to be the first thing cut, and the share of families skipping vacations could grow.

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