What $20 Could Buy You Through History
Imagine walking into a grocery store with $20 in your pocket. What can you buy? Today, you might be able to grab some pasta and vegetables for the night’s dinner and have leftovers for tomorrow’s lunch, if you’re lucky. The purchasing power of a dollar has changed dramatically from the early days of American history, largely due to the ever-increasing prices of the things we spend money on — that pesky reality we call inflation. Twenty bucks might not put much in your grocery bag now, but in the mid-20th century, it could easily stock your pantry — or even cover a visit to the doctor. Here’s what $20 could comfortably buy you at different times in U.S. history.
Colonial Era
The colonial American economy primarily used a mix of British currency (pounds, shillings, and pence), Spanish dollars, and various forms of local currency. There was no unified economic system; the value of money and exchange rates varied among colonies, and historians admit it’s a challenge to draw direct comparisons to modern prices. Using various online converters, we can loosely estimate $20 to be equivalent to about 100 shillings at the time. In the 1730s, 20 shillings could buy 50 acres of land in Maryland or about 3 pounds of beef in New England. In 1777, the same amount would outfit a man in a full suit of broadcloth in Rhode Island.
Of course, while it’s fun to speculate, it’s nearly impossible to determine with any certainty how much $20 was worth in colonial America, as there was no standard national currency until the U.S. won independence at the end of the Revolutionary War.
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1870s
In 1785, the dollar was established as the official unit of currency of the newly formed United States, and the first coins were printed in 1794 when the Coinage Act established the U.S. Mint. (The first paper money came later, in 1861.) While the young country grappled with economic uniformity for decades, the U.S. dollar was well ingrained by the mid-19th century.
By 1870, $20 could cover an entire month’s rent for a Lower East Side tenement apartment in New York City. Though the conditions in tenement buildings were often overcrowded, unsanitary, and unsafe, many working-class families and new immigrants called them home. Today, after centuries of both inflation and gentrification, the average rent in the same Manhattan neighborhood hovers around $5,000 a month. That $20 rent might sound like a great deal in comparison, but most laborers only earned about $50 a month — meaning 40% of their income often went to housing. Professionals such as doctors or lawyers were, of course, much better off, taking home a few hundred dollars a month.
In rural areas, $20 was also sufficient means to buy a milking cow, providing a steady supply of milk, cheese, and butter for a household. A decent selection of clothing was also within reach with $20 to your name. Newspaper advertisements from San Francisco touted formal wear such as silk suits for $12.50, heavy woolen coats (known as ulsters) for $5, and twilled silk umbrellas for $1.50 each. Altogether, that was $19 worth of clothing. Today, $20 might only buy you a couple cups of coffee if you're living and working in a city; in rural areas, it might fuel a week’s worth of caffeine. Or if you’re shopping for clothes on a budget, 20 bucks could probably snag you a pair of jeans on sale.
1920s
In the economic boom of the Roaring ’20s, consumer goods became increasingly accessible to everyday Americans. For the men and women who dressed up to go out and dance the Charleston, $20 could easily cover a stylish suit, coat, or dress for the occasion. The popularity of household appliances was also on the rise. Electric stoves didn’t outnumber gas ranges for another decade or so, but a smaller electric oven for the kitchen countertop cost around $10, putting home innovation and upgrades within reach for some Americans. The average U.S. income averaged between $3,000 and $5,000 a year throughout the decade, so to many, $10 here or $20 there wasn't just pocket change; it represented a decent chunk of their monthly income of just a few hundred dollars.
In the 1920s, the popularity of cars exploded in the U.S., but $20 wasn’t near enough to buy a popular Ford Model T — that would run you a whopping $260. If you did have a car, though, $20 could fill the 10-gallon gas tank about 10 times over, making a road trip on America’s rapidly improving roadways a must.
1950s
The average U.S. household income in 1950 was about $3,300, and $20 still had decent purchasing power for necessities and beyond. It was, for instance, possible to plan a full holiday meal for your family with much less than $20. In fact, according to the American Farm Bureau Federation, it cost just under $7 for a meal that included a 16-pound turkey, potatoes, stuffing, dinner rolls, cranberries, and pumpkin pie throughout the entirety of the 1950s. At that price, families could add some extra vegetables such as carrots, and maybe even a nice bottle of wine or champagne.
As another example, $20 could buy 400 cans of Coca-Cola. Excessive, no doubt, but by the end of the 1950s, the U.S. indeed loved its canned sodas, and since Coke was still priced at just 5 cents a pop, just about anyone could enjoy one now and then. The cost of medical care was much lower in the 1950s as well — $20 could cover three or four checkups with your doctor, at about $5 to $6 a visit, or even a trip to the operating room for minor procedures.
1980s
Music lovers today know that many live shows are a luxury expense or even out of reach — an average concert ticket costs well over $100. But in 1980, $20 could snag you two tickets to see some of the top acts of the day, including Peter Gabriel, Bob Seger, or the Grateful Dead. Today, meanwhile, it might be able to get you a drink at big arena shows.
For kids (or collectors), brand-new Transformers toys at the peak of their popularity in the ’80s were typically priced at about $10; for a more deluxe figure, $20 was the norm. And while $20 doesn’t go very far in the fast-food realm today, in the 1980s, it bought a lot: A McDonald’s value meal deal cost a mere $2.59, meaning $20 could feed a family of seven — or a family of five with money left over for ice cream afterward.
