From Light Bills to Tech Bills: How Our Monthly Expenses Have Exploded With Technology

Way back in the day, the electricity bill was called the “light bill” because that’s all people used electricity for – lighting their homes. Today’s households face a completely different financial reality, juggling multiple technology expenses that previous generations never imagined.

When Electricity Meant Only Lights

Initially, electricity was used primarily for lighting. But as appliances like vacuum cleaners, refrigerators, and washing machines became more popular starting in the 1950s, demand for electricity grew by leaps and bounds. In the 1920s, just 35 percent of American households had electricity, and those that did used it sparingly.

Between 1945 and 1965 US electricity generation capacity increased by a factor of 4, and power generated increased by a factor of 6. The generation capacity spike came hand in hand with an explosion in household electricity consumption, from an average of 1200 kilowatt-hours per year to almost 5000 kilowatt-hours per year.

The transformation was dramatic. In 1910, one in seven American home were wired for electricity. By 1930, that number had risen to seven in ten. Even then, most homes had minimal electrical usage – perhaps one central light and a couple of wall lights.

Today’s Technology Bill Stack

Modern families pay for services that didn’t exist when electricity was just for lights. Streaming services represent a major new expense category. According to a survey by Reviews.org, Americans spent an average of $42.38 per month on their streaming subscriptions, or $508.56 per year. Popular platforms have seen steady increases – Netflix’s Standard plan is $17.99, which includes two screens, and the Premium plan is $24.99, which includes four screens as well as upgraded HDR/4K resolution.

Internet Bills Replace the Old “Light Bill”

Today’s equivalent of the old light bill might be internet service, but it costs far more than electricity ever did for basic lighting. U.S. households collectively spend $164 billion per year on cable and internet services. The average household pays about $1,063 annually, or $121 per month.

These numbers reflect only basic connectivity costs before adding streaming subscriptions, cell phone plans, and other digital services that pile onto monthly budgets.

Rural America’s Electric Revolution

The difference between then and now becomes stark when considering rural America’s experience. By 1930 more than 90 percent of rural homes still used kerosene lamps for lighting; and running water and indoor bathrooms were impossible without powered pumping systems.

Of the roughly 6.3 million American farms in 1922, only about 3% had electricity. It wasn’t until 1935 that the U.S. government addressed this huge rural vs urban electric divide with the formation of the Rural Electrification Administration.

The Modern Reality

According to JD Power, as of 2025, the average (single line) cell phone bill is $141/month. Combined with streaming subscriptions averaging $42 monthly and internet access at $121 monthly, a typical family spends over $300 for technology services. That’s before considering cable TV, gaming subscriptions, cloud storage, and other digital services that have become part of modern life.

In 1913, the price was $0.10 per kWh. By 1920, it had decreased to around $0.07 per kWh. In 1930, the cost was about $0.06 per kWh. Even accounting for inflation, those early “light bills” represented a fraction of what households now spend on technology services.

The evolution from a simple light bill to today’s complex web of technology expenses illustrates how dramatically household budgeting has changed. Where families once worried about keeping the lights on, they now manage multiple monthly subscriptions for services that keep them connected to an increasingly digital world.