The Financial Burden of AUD

While the cost of a few drinks may not burn a hole in your wallet on a given night, you may be surprised to see the financial drain over a month or year. People with alcohol use disorder (AUD) might look the other way when it comes to how drinking hurts their finances, but the spending adds up. Here’s the thing: not only does AUD increase your spending on alcohol, but it can lead to riskier financial habits and increased spending in areas you might not consider. 

How Much Do People Spend on Alcohol?

How much someone spends on alcohol depends on what and how often they drink. The guidelines for heavy drinking include more than four drinks per day for women and five or more drinks per day for men. It’s important to note that just because someone does not meet this criteria, they still may have a problem with their drinking or have AUD (1). 

Let’s take a look at a moderate drinker’s estimated spending. As defined by the Centers for Disease Control and Prevention (CDC), a moderate male drinker has two drinks or less in a day, and a woman has one drink or less in a day. Again, these guidelines don’t mean that someone doesn’t have a problem with their drinking. If you drink two $10 drinks daily, you’ll spend $140 per week or $7280 annually. These numbers don’t calculate for tips. 

On the other hand, for people who binge drink, meaning those who drink excessively in a short period, the annual cost may be more complicated to calculate precisely. The CDC defines binge drinking as consuming 4 to 5 drinks within two hours. You can use the Alcohol Cost Calculator to find the breakdown of your daily drinking and the annual cost. 

Sure, the cost of a night out adds up, but when calculating the cost of drinking, it’s not only a round of drinks you are paying for—it’s the cost of an Uber to and from the bar. You might also factor in online purchases made under the influence or the likelihood of buying a round for everyone because you are more apt to do so while buzzed. 

The Healthcare Costs of AUD

AUD raises healthcare costs substantially. In 2019, the CDC estimated a $27 billion economic impact in healthcare costs for those with AUD (2). 

One study found that having an AUD diagnosis increases healthcare costs by $14,918 per year for those with commercial insurance. The study found that the overwhelming majority of the reasons for the additional costs were due to alcohol-associated conditions such as stroke, heart disease, and liver disease (3).

Alcohol-related injuries such as falls, drowning, self-injury, or accidents also raise healthcare costs. 

A common adverse outcome of problem drinking is the cost of car accidents. Medical care and car repair costs are not insubstantial. You may also face the price of a DUI, higher insurance rates, and expenses associated with court fines and public transportation if your license is suspended. A first-time DUI costs between $10,000 and $25,000 (4).

Riskier Financial Habits With AUD

One study examined the cyclical nature of spending habits and alcohol. People may use alcohol to cope with financial stress, which causes them to purchase alcohol, leading to more financial stress (5). It’s a draining cycle, financially and emotionally.

It’s no surprise that drinking leads to overspending. But AUD can also make the future seem unimportant, causing less intentionality around spending and saving for the future. In these cases, alcohol takes priority over other life plans. 

Debt and AUD are linked. Credit card debt is associated with a higher incidence of risky alcohol-related behaviors. One study found that college students who used alcohol had more credit card debt than non-alcohol users. 28% of drinkers had credit card debt over $1,000 (6).

AUD and Work

After a weekend of binge drinking, people are more likely to call out on a Monday. In fact, AUD is linked to 232 million missed work days per year for full-time employees. Multiple days of calling out don’t bode well for the average employer—the cost of frequent calling out might just be someone’s job. 

How Can You Tell if Alcohol Is Impacting Your Finances?

To consider how alcohol might play a role in your finances, it may help to reflect on the following questions as they relate to your life. 

• How much do you spend on alcohol per week? Per year? How do you feel about these numbers? 
• When you are sober, how do you feel about your finances (investments, savings, or financial plans for the future?)
• Have you ever decided to spend on something you wouldn’t have bought had you been sober? 
• Have you made risky financial decisions while under the influence, such as gambling or overspending?
• Has drinking contributed to credit card debt?
• Have you had to pay for things that resulted from alcohol use, such as a DUI or medical costs for an alcohol-related injury?

How Much Can You Save Without Alcohol?

Quitting or reducing your drinking can have some profound impacts—better health, more energy, and more in your wallet. 

The amount that people save per week on getting sober depends on their drinking frequency and what they drink. According to a Newsweek article, even those who only drink the cheapest form of alcohol can save $300 a month or $3600 a year. Couples buying 8 $20 bottles of wine per week could save $8,320 annually (7).

In the same article, a finance specialist calculated that redirecting your alcohol spending to a retirement account like a Roth IRA could amass over $100,000 in 20 years. This number could substantially improve the security of someone’s future. 

There’s an established link between financial instability and alcohol abuse. There’s also the great likelihood that by improving your relationship with alcohol, you can gain control over your finances. 

If you significantly reduce your spending on alcohol, what would you do with that money instead?

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