What People Spend Most of Their Money On, By Income Group, Relatively Speaking
The more money people come across, the more things they can and tend to buy. More money on average means bigger houses, more expensive cars, and fancier restaurants. But what if you look at relative spending instead of total dollars?
For example, if a lower income group uses 9 percent of their total spending to pay a mortgage, does the higher income group also pay 9 percent? Or does additional income go to other spending categories?
The charts below show how different income groups spend their money, based on data from the Bureau of Labor Statistics for 2020. Each chart represents a spending category. Each column represents an income group.
Lower Income Spending
These are the categories that lower income groups tend to spend more on, percentage-wise, than higher income groups. Note the downward trends.
Higher Income Spending
These are the categories that higher income groups tend to spend more on, percentage-wise, than lower income groups. Note the upward trends.
So yes, the more money people make, the more they tend to spend in all categories, but there’s only so much house or cars to buy. Once the essentials are covered, the extra money goes towards savings, entertainment, vacations, and higher education.
How Much the Everyday Changes When You Have Kids
I compared time use for those with children under 18 against those without. Here’s where the minutes go.
Life expectancy changes
The data goes back to 1960 and up to the most current estimates for 2009. Each line represents a country.