cost of smoking

The True Cost of Smoking on Your Health and Wealth

August 7, 2018 By Amanda Blankenship Leave a Comment

It has been known for some time that smoking has some serious health implications. Tobacco use alone accounts for 500,000 deaths in the United States each year. And, since 1964, smoking-related illnesses have claimed the lives of more than 20 million people. The cost of smoking doesn’t end there though.

How Much Does Smoking Cost?

Each year, Americans spend more than $300 billion on smoking. This includes a number of “unseen” costs, such as medical care and lost productivity. In addition to, direct costs, such as the cost of a pack of cigarettes.

An individual smoking a pack a day spends about $177 per week on cigarettes (more than $9,200 a year). These are out-of-pocket costs. In addition to that, it has been determined that individuals who smoke also lose a bit of opportunity when it comes to expanding their finances. (Determine your direct cost of smoking using this calculator.)

This financial opportunity cost has led to an overall reduction in net worth among smokers. Each year an adult smokes is associated with a loss in net worth of $410 or 4%. On average, heavy smokers are $8,300 poorer than non-smokers. Those who are considered light smokers had a reduction in net worth of $2,000 when compared to non-smokers.

Health Care Costs of Smoking

Non-smokers also have a leg up when it comes to overall healthcare cost. Smoking-related health issues are one of the largest financial drains caused by smoking. The habit leads to being sick more and can have more serious health implications – like developing lung cancer. Each year, the U.S. spends more than $170 billion on medical care to treat smoking-related illnesses.

If you get sick, you’ll also lose money because you won’t be able to work. The cost of lost productivity for smokers is hard to measure because there are so many illnesses associated with the habit. However, it is known to lead to missing days at work and lower productivity all around, costing you even more money in the long run.

There are a number of other small costs for smokers as well. For instance, smokers will have to pay more for health insurance and even home insurance than non-smokers.

The Cost of Smoking in Each State

When it comes to the cost of smoking, location determines a lot. WalletHub pulled together data outlining the lifetime cost of smoking in each of the 50 states and D.C.

To assess the overall impact of smoking on a person’s wallet, they looked at the potential monetary losses outlined above (out-of-pocket cost, opportunity loss, healthcare, income loss, etc.). The data below assumes the smokers in that state smoke a pack a day every day beginning at the age of 18 until the turn 69 (the average lifespan of a smoker).

Discover how much it costs to be a smoker in your state below.

State	Lifetime Cost	Direct Cost	Opportunity Loss	Health-Care Cost	Income Loss	Other Costs
Kentucky	$1,145,128	$88,794	$745,905	$118,056	$182,829	$9,544
Georgia	$1,156,444	$86,932	$730,268	$119,262	$208,231	$11,751
North Carolina	$1,162,243	$86,374	$725,577	$141,844	$196,884	$11,564
Mississippi	$1,184,526	$94,006	$789,690	$123,138	$165,354	$12,339
North Dakota	$1,191,219	$84,140	$706,812	$147,718	$241,185	$11,364
Tennessee	$1,197,782	$93,075	$781,871	$122,073	$190,022	$10,741
Alabama	$1,198,089	$94,006	$789,690	$119,748	$182,613	$12,033
South Carolina	$1,202,648	$92,517	$777,180	$129,717	$191,344	$11,891
Missouri	$1,208,621	$89,910	$755,288	$150,003	$202,339	$11,081
Idaho	$1,248,479	$94,564	$794,381	$148,382	$200,630	$10,522
Nebraska	$1,283,681	$93,633	$786,563	$168,711	$221,887	$12,887
West Virginia	$1,289,961	$102,755	$863,186	$141,375	$173,988	$8,658
Wyoming	$1,292,740	$94,006	$789,690	$156,734	$241,303	$11,006
Indiana	$1,302,032	$100,521	$844,421	$141,425	$205,767	$9,898
Arkansas	$1,311,314	$107,595	$903,843	$116,115	$172,731	$11,030
Virginia	$1,324,941	$93,820	$788,126	$161,010	$269,888	$12,098
Oklahoma	$1,326,589	$103,313	$867,877	$144,377	$195,995	$15,027
Colorado	$1,334,374	$97,356	$817,837	$150,303	$255,082	$13,796
Louisiana	$1,337,361	$108,153	$908,534	$119,834	$186,260	$14,580
Oregon	$1,389,232	$107,036	$899,152	$156,153	$217,342	$9,550
Montana	$1,394,551	$110,015	$924,172	$151,931	$197,390	$11,043
Kansas	$1,404,611	$108,339	$910,098	$153,640	$218,570	$13,964
Iowa	$1,409,936	$107,595	$903,843	$164,949	$222,646	$10,904
Ohio	$1,429,453	$113,924	$957,010	$143,062	$206,750	$8,707
Florida	$1,429,458	$109,829	$922,608	$179,236	$199,512	$18,273
Texas	$1,470,116	$113,738	$955,447	$159,324	$223,286	$18,321
New Mexico	$1,495,723	$120,625	$1,013,305	$164,019	$186,350	$11,423
South Dakota	$1,502,152	$118,578	$996,104	$163,848	$212,478	$11,144
Delaware	$1,508,054	$110,573	$928,863	$209,839	$248,949	$9,830
Nevada	$1,515,965	$120,811	$1,014,869	$153,512	$216,624	$10,149
Utah	$1,537,950	$118,391	$994,540	$153,734	$255,073	$16,211
Michigan	$1,573,730	$128,444	$1,078,982	$149,378	$207,276	$9,649
New Hampshire	$1,575,036	$115,971	$974,212	$194,762	$279,419	$10,672
Maine	$1,598,473	$126,210	$1,060,217	$195,151	$207,370	$9,524
Arizona	$1,621,614	$131,794	$1,107,130	$161,825	$209,467	$11,398
Wisconsin	$1,695,364	$136,634	$1,147,787	$178,346	$222,809	$9,788
Maryland	$1,704,023	$123,604	$1,038,325	$218,736	$310,353	$13,005
Pennsylvania	$1,745,665	$141,660	$1,190,008	$179,422	$223,972	$10,604
Illinois	$1,765,168	$141,660	$1,190,008	$179,902	$241,520	$12,078
New Jersey	$1,830,777	$138,496	$1,163,425	$214,489	$300,704	$13,663
Washington	$1,856,481	$148,920	$1,250,994	$188,668	$256,420	$11,479
California	$1,879,072	$148,362	$1,246,303	$208,805	$260,235	$15,368
Vermont	$1,902,453	$154,877	$1,301,034	$206,914	$228,904	$10,724
District of Columbia	$1,916,539	$144,266	$1,211,901	$249,214	$297,575	$13,583
Minnesota	$1,919,776	$153,760	$1,291,651	$202,743	$257,925	$13,696
Alaska	$2,059,662	$162,881	$1,368,275	$214,057	$303,732	$10,717
Hawaii	$2,067,655	$167,535	$1,407,368	$185,243	$293,666	$13,842
Rhode Island	$2,167,445	$174,981	$1,469,918	$269,173	$238,219	$15,154
Connecticut	$2,188,930	$170,513	$1,432,388	$277,760	$292,760	$15,508
Massachusetts	$2,209,285	$172,189	$1,446,462	$285,966	$289,492	$15,176
New York	$2,330,381	$194,341	$1,632,547	$241,200	$247,823	$14,469

Instead of Smoking…

There’s no doubt there is a boatload of savings to be had by kicking the bad habit of smoking. With the savings, you could do some amazing stuff. Here are just a few ideas.

Take a vacation each year! More than $9,000 in savings should provide enough cash for a fantastic getaway.
Pay off debt. Many smokers find themselves in a harder place financially because of their habit. Use the extra cash you have from quitting to pay off debt.
Buy yourself a car. If you’ve been in need of a new car (or just want to treat yourself), the $9K+ you saved from quitting will help you buy it.
Put a chunk of your savings toward your mortgage (or pay it off).
Stash away some cash and open an IRA.
Treat yourself to a nice meal out each week.

There’s no doubt that giving up smoking is extremely difficult for most people. However, the benefits of quitting (on your health and finances) heavily outweigh any benefits there may be in taking a drag.

Readers, do you smoke? What has the impact been on your wallet?

Do E-Cigs Save Money Over Cigarettes?

March 21, 2014 By Lori Kelley 7 Comments

Electronic cigarettes, commonly referred to as e-cigs, have become more common over the past decade. You might have seen someone smoking one in public or even in an enclosed space, such as a restaurant or bar. These devices are battery powered and utilizes a heating element that vaporizes a liquid solution, some of which contain a mixture of nicotine and different flavorings. Many are designed to simulate smoking, and are said to have fewer toxic effects than traditional cigarettes. Traditional cigarettes come with a financial price, and some people have switched to e-cigs for various reasons, including the overall costs.

First, it’s important to make clear that switching from cigarettes to e-cigs isn’t the best move you can make for your wallet or health. The best thing to do is to quit smoking completely not using either device. For those where quitting completely isn’t an option, here are a few ways that e-cigs can save you money compared to traditional cigarettes:

No Taxes

Unlike traditional cigarettes, e-cigs are currently free from taxes. Traditional cigarettes are subject to both state and federal taxes, and depending on where you live, taxes can run anywhere from $0.50 to $4.00 per pack. As of right now, you don’t have to worry about paying taxes on the electronic version. Not having to pay taxes lowers their price so that they have a pricing advantage. This advantage could change as they become popular, but for the moment, it keeps the overall price down.

Depending on the brand of cigarettes you smoke, one pack can cost anywhere from $5 to $10, before taxes. The average cost of an e-cig cartridge is around $3 and while it may not seem like a big difference, it can help you save hundreds of dollars a year. For instance, if you smoke 5 cigarettes a day and pay $7.00 for one pack of traditional cigarettes, you yearly cigarette expensive would be $638 whereas your yearly cartridge expense would be $228. That’s a yearly savings of $360.

Refills

It’s also much cheaper to refill your cartridges than it would be to buy a new pack of cigarettes. To do so, you’ll need a vaporizer (go to this site to check advanced vaporizers), and then you can buy the flavorings in liquid form. You know how some people roll their own cigarettes? Well, with e-cigs you can just refill old cartridges or buy blanks specifically to be reused with refills of liquid nicotine.

Bulk

Just as it’s cheaper to buy cartridges compared to a pack of cigarettes, it’s also less expensive to buy cartridges and liquid nicotine than it is to buy cigarettes in bulk. Many online retailers offer coupons and discounts for their products, in the hopes that you’ll buy in bulk.

Money Back Guarantees

While there is a pricey starter kit for e-cigs (which runs about $40 to $60 depending on the retailer), almost all of the companies offer a 30 day money back guarantee if you don’t like their product. This is a great option if you want to try using this technology, but are worried about spending the initial fee for the starter kit.

Discounts

Many online retailers offer significant discounts not only on first-time purchases, but on repeat purchases. These discounts can range from 10% to 25% and are much better than any coupons you may find for traditional cigarettes (though, keep in mind that many places do not allow you to use coupons or discounts for cigarette purchases).

Health Costs

There is a claim that e-cigs are healthier than cigarettes. Cigarettes are known to cause a lot of health problems and switching may help you avoid some of the associated health costs down the road. The truth is that there haven’t been enough studies to determine if this claim is true or not at this point. From a layman’s viewpoint, it seems that getting rid off the tar and chemicals that come in cigarettes would be healthier. While nicotine is still an addiction and not entirely healthy, the nicotine would seem to be a healthier option than the ingredients put into traditional cigarettes. If this ends up being true, it could save thousands of dollar a year in health costs.

Covering Up Smell

If you were ever the type of smoker who made sure to have perfume, cologne, or body spray to cover up the smell or mints or gum to freshen your breath, you won’t have to worry about spending money on those items if you make the switch. This may not seem like a big deal, but those costs add up over time.

Higher Resale Values

One of the things that traditional smoking does is devalue all the things that you own. Your car is worth less, your house is worth less and anything where the smoke smell permeates is worth less if the time ever comes to sell. Since e-cigs don’t come with the smell of cigarettes, all of the the things you own will have a higher resale value. This can be worth thousands of dollars, and even tens of thousands when it comes to your house.

Other Associated Costs

Cigarettes unfortunately cause a lot of side effects such as yellowed teeth, brittle hair, less energy, and tobacco side effects. Most people don’t enjoy having these issues or have become so used to them that they’re no longer bothered by them. However, switching to e-cigs will help reduce these issues. For instance, your taste buds will come back in full force, you’ll have more energy, and your skin and hair will return to their normal, healthy state.

While switching would not eliminate all the costs of smoking, it would limit a number of the costs. Again, not doing either would be by far the best financial move, but given the choice between the two, it appears that e-cigs have the financial advantage.

(Photo courtesy of Lindsay Fox)

The Myth That Quitting Smoking Will Save Money

December 14, 2013 By S. Shugars 16 Comments

I know that what I’m about to write will go against everything that conventional wisdom and financial experts preach, but the truth is that quitting smoking does not save money — at least not in the short-term. Let’s start by putting aside the debate as to whether smoking is a nasty habit or not and look at it purely from a financial perspective.

The main problem I have with the assertion that quitting smoking will save those who quit money is that it fails to take into account that most people who quit smoking will replace the smoking habit with something else. In a perfect world this would not be the case and those who quit smoking would instantly begin living healthy in all aspects in their lives, but the fact is that for the vast majority of smokers this will not happen. To discount that smoking will be replaced with something else, and the money that is involved with that replacement, is where the financial experts fail in their assertion that quitting smoking saves money.

Let me illustrate from my personal example. I smoked half a pack a day for a number of years. At that time, the cost came to about $2.25 a day for my cigarettes. When I quit smoking, the conventional wisdom states that I should have saved about $820 in my bank account after a year. The reality was far different.

What really happened was that I ended up spending far more money when I quit smoking than I did when I was actually smoking. When I stopped smoking, I found that I had the desire to eat much more than when I did smoke. According to my records, I ended up spending about $5 a day more on food to quench my desire to smoke which added up to a net loss of $820. That’s right. Instead of saving money, I actually spent much more money in my attempt to continue to stay smoke free. But the spending didn’t stop there.

Eating the extra food when I stopped smoking made my weight balloon. While smoking I never had a major weight issue, but as soon as I stopped, weight quickly became one. That meant that I ended up spending money on diet plans and exercise programs. Adding the costs of these in addition to the extra food put my net loss at close to $2000 for the year compared to if I had continued to smoke. And that doesn’t even take into account the higher cost of the non-smoking programs and devices that was spent during the 6 months that it took me to fully quit smoking.

let me make it clear that I do not regret quitting smoking. I think that in the long run it will make me a healthier person and I will live longer, and it might even save me money. But I think the financial experts do a disservice by not taking into account the reality that most smokers will end up spending more money in the first few years they quit. There is this implication from many that quitting smoking will immediately save you money because you no longer will be spending money buying cigarettes. The truth is that quitting smoking is going to cost you more, at least for the first few years as you struggle with the side effects that come with quitting.

While everybody is different, I don’t believe that my circumstances are so unique that they deviate from the average person who quits smoking. My guess is that most people who quit are glad they did so, but also end up spending more money doing so than if they had kept smoking. This might not be the case for extremely heavy smokers, but I do believe it is for most smokers.

I still believe that there are good arguments to quit smoking and that is the reason I did, but for those who are expecting an istant windfall of extra money in their budget from doing so will be sorely disappointed.

(Photo courtesy of DucDigital)

Smoking Costs Much More Than The Price of Cigarettes

November 26, 2011 By Jeffrey Strain 2 Comments

Most people only consider the cost of cigarettes when they calculate how much smoking is costing them. It’s easy to calculate this cost as you know exactly how much you are handing over in cash for each pack of cigarettes you purchase. The truth, however, is that the cost of cigarettes is only a small portion of the overall cost of smoking.

Most smokers forget to take into account the higher cost of insurance (auto, life, health) for being a smoker, the way that smoking devalues assets (car, home, furniture, etc) and other costs that one might skip over if they didn’t think too hard about all those little extras that add up when you smoke. The below infographic from Cost of Smoking clearly shows that the cost of smoking is a lot more than just the cost of the cigarettes: