The Real Cost of Smoking
The Real Cost of Smoking
Every year, more information comes out about the short and long term effects that smoking has on your body. However, the negative effects that traditional cigarettes have on the body are nearly matched by the exorbitant toll that smoking takes on your bank account.
Every year, Americans lose more than $300 billion on smoking's physical costs, according to a report by the Centers For Disease Control And Prevention. This includes about $156 billion for lost productivity resulting from smoking related diseases, and nearly $170 billion in direct medical care for adults due to premature death and exposure to secondhand smoke.
The average amount that an individual smoker spends, however, changes depending on which state they live in. This article will look at the cost that a smoker will incur depending on which state they come from. Here at Breazy, we support cessation by trading those expensive traditional cigarettes for the comparatively less expensive e-cigs and vaping.
Smoking Statistics and Prices
There are approximately 36.5 million tobacco users in America alone, and a study by the website WalletHub looked at the true per-person cost of smoking in each of the 50 states. Their study found that in states like Kentucky or Georgia the total lifetime cost of tobacco use is around $1.1 million per smoker, while states like New York - the highest spending state - the costs rise to over $2.3 million per smoker.
When it comes to individual smokers, the numbers are equally staggering. In Kentucky, the average cost is about $22,000 per smoker, when factoring in out-of-pocket cost, health care, and financial opportunity cost. In New York, the cost jumps to around $45,000 per smoker with the heftiest out-of-pocket cost of about $3,800 per person coupled with $32,000 in financial opportunity cost.
To determine per-person "Out-of-Pocket Costs Over a Lifetime," the website took the average cost of a pack of cigarettes in each state and multiplied that figure by the total number of days in 51 years, and multiplied the average cost by 365 days.
To determine the per-person Financial Opportunity Cost, they calculated the amount of return a person would have earned by instead investing that money in the stock market over the same period. Then they used the historical average market return rate for the S&P 500 minus the inflation rate during the same time period in order to reflect the return in present-value terms.
Vaping Versus Cigarettes
The potential benefits of vaping versus smoking cigarettes have been widely discussed, but one piece of the puzzle that often gets left out is monetary cost. Ex-smokers often report that one factor that pushed them to quit was the high price of cigarettes: they can save up to $5,000 per year, depending on how much a person smokes and where they live.
An analysis conducted by NerdWallet in 2014 estimates that smokers spend closer to $2,500 per year on cigarettes. Disposable vapes that do not require a charger or battery average about $1,387 per year, while rechargeable kits are far less expensive in the long run, at about $600 per year. NerdWallet too finds tank systems less expensive, estimating they cost about $516 per year.