Do you ever feel like your monthly phone bill is constantly increasing? You are certainly not alone in your frustration. Telecommunications is one of the fields in which consumer discontent seems to grow more every year.
With the advent of smartphones, more functions are being introduced to our mobile devices, which are also becoming increasingly complex. Consequently, cell phone plans seem to rise with a steady upward trend of monthly payments.
Staying informed about all the variables contributing to your cell phone plan cost can be a considerable budget-saver when considering your family’s financial planning. There’s a lot to unpack between data usage, your plan’s features and options, and more abstract line items like taxes and fees.
Understanding the average cost of a cell phone bill and some of the main factors that influence it can help you alter your plan. You can identify areas where you are overspending and take steps to cut costs wherever possible. Everything you know helps you put your phone bill in perspective and ensure you get the best deal. Knowledge is power—and perhaps some cash savings as a bonus!
Key Takeaways
- One person’s average cell phone bill on a big-name carrier ranges from $50 to $70 monthly.
- Data usage, plan features, taxes, and fees can significantly impact your monthly phone bill.
- Understanding the average monthly phone bill and exploring cost-saving measures can optimize your cell phone plan and save money.
Factors Influencing Your Monthly Phone Bill
So, how much is a phone bill? Unfortunately, your monthly phone bill is not a fixed cost you can depend on in most cases.
Instead, it is a constantly moving puzzle that changes from month to month. Knowing how all the puzzle pieces fit together can help you plan for changes to your bill.
- Data Usage: How you use your data matters. If you’re a heavy streamer, a frequent downloader of big files, or you use many data-hungry apps, your bill will balloon. It’s like a water bill. Use more, pay more.
- Plan Features: Attractive add-ons such as unlimited data, international calling, or device insurance can add up. You will save some money if you analyze which features you need and which you could do without.
- Taxes and Fees: Government taxes and regulatory fees will be included in your bill, and they can vary widely depending on where you live and with which carrier. Be sure to factor these into the equation when comparing plans.
- Device Payments: That shiny new phone you’re financing through your carrier isn’t free either. If you pay it off in monthly installments, that cost will be reflected in your monthly bill.
- Fees: It’s in the fine print: Some carriers hide activation, early termination, or other fees in a contract’s fine print. Be sure to read your contract carefully and ask questions to avoid surprises.
By understanding these factors and carefully monitoring your usage, you can have greater control over your phone bill amount and avoid falling into high charges. Knowledge is, indeed, power.
Standard Pricing for Major Carriers
Price is essential when deciding on a cell phone plan. However, the pricing structure is difficult to follow due to the many carrier companies and varied plans. Here’s a comparison of the top three carriers in the US and what you can expect, on average.
Verizon
Verizon is likely to be found anywhere there is a signal. However, the company’s plans are among the most expensive. Their unlimited talk, text, and data plans have an average monthly phone plan cost of around $70.
AT&T
Another household name with solid coverage, AT&T’s unlimited plans average around $65 monthly. Plus, it often offers deals and discounts, so check for those.
T-Mobile
T-Mobile is usually the cheapest carrier, with unlimited monthly plans averaging $50-60. The company offers free international texting and data access in many countries.
Of course, remember that these are base prices for plans with unlimited everything. Prices can escalate quickly if you add additional lines or luxury features or go over your pre-set limits. Be mindful of your patterns and what you need, and compare carefully.
What Are the Hidden Fees on Your Phone Bill?
Don’t be fooled by innocent-appearing phone bill statements. What looks like harmless paper to the untrained eye is often filled with secret steel trap fees that hide and then suddenly leap out, pouncing on even the savviest consumers.
- Activation Fees: Though not all carriers impose these surcharges, an activation fee is typically $25 to $45 for new lines or when you add another feature to an existing line.
- Early Termination Fees (ETFs): Do you want to leave your carrier before your contract ends? That’s going to cost you – big. Depending on your clause, an ETF can be hundreds of dollars. The average ETF for a smartphone is $350, and they can go up from there.
- Data Overage Fees: Once you use your data, you will likely pay hefty overage charges. Carriers generally charge users per gigabyte they go over, meaning you can easily spend a lot on those scrolling sessions.
- Other tricks: Sneaky fees for services you might not even need, such as getting a paper statement or international roaming, quickly add up.
If you don’t take the time to read the fine print and ask about additional charges you might incur by signing up for a specific plan, you are setting yourself up for trouble. Savvy consumers know that you can’t fool the bank – they know the importance of money from every bill.
How Can You Lower Your Monthly Phone Bill?
Fed up with your phone bill climbing higher every month? Well, don’t just sit there – you can do plenty of proactive things about it. If you’re prepared to dig deep, you can get significant savings and increase your disposable income. Here are some practical strategies you might find helpful:
1. Check Your Data Usage
Look at your data usage trends. Are you constantly going over your limit? Or do you have excess data every month that you’re not using? Adjusting your plan to match actual usage can save you a bundle.
2. Prepaid
Can you get by with a prepaid plan? Some lighter data users on a budget can benefit from these plans. Just know they may have fewer options than with bigger named carriers.
3. Be BFF with Wi-Fi
When possible, use Wi-Fi to make phone calls. Data usage is drastically reduced when your cell phone connects through a Wi-Fi network. Using Wi-Fi helps keep you away from the dreaded overages.
4. Haggle
Many carriers will haggle with you over price, especially if they want to keep you as a customer. Try to negotiate before leaving. It doesn’t hurt.
5. Shop Around
If multiple family members are on separate plans, try saving money by consolidating your coverage into one family plan.
If you pay attention to your cell phone use and learn how to budget accordingly, you can keep your bill under control and enjoy all the technological benefits at a much lower cost. It just takes time and effort to read through your monthly bill.
Choose the Plan That’s Best for You
Think carefully about when you use your cellphone to decide which plan is best for you. If you rarely stream videos when you’re away from Wi-Fi and use your phone mainly to call your friends or use messengers, any plan should work for you. On the other hand, if you always want to be connected and are a heavy data user, an unlimited plan is probably a better option.
Remember that the typical cell phone bill is just that. It’s a way to give you a benchmark to see how you compare.
Your actual cost will depend on your situation and choices. However, if you consider the variables that affect your bill and take advantage of ways to save money, you can effectively manage your cell phone bill.
The Rising Cost of Staying Connected
While the average cell phone bill is around $50 to $70 per month, most of us know that number is only going up. This is unfortunate since we use our smartphones for so much more than we ever have before: communication, entertainment, and work.
Remember, saving money on your phone bill is not about being cheap. It’s about getting more for your dollar. With your eyes open, being two steps ahead of the industry will help you do just that.
Cell Phone FAQs
How Much Is a Cell Phone Bill Per Month?
The average cell phone bill for a single user on a major carrier is $50- $75 per month.
How Much Does Cell Phone Service Cost?
The cost depends on several factors – how much talk, text, and data you want, the device you use, your location, and the carrier.
I Need to Pay My Phone Bill, but I Have No Money. What Options Do I Have?
If you are in a situation where you are saying, “I need money now to pay my phone bill,” know there is help. Contact your carrier directly and see what they can do to help. Many will defer your payment date slightly to give you more time to pay.