The chart provides information about the average amount that people spend of their household income, having in mind three different types of income: low ($15,000-25,000), medium ($50,000-75,000), and high (above $150,000).
Although there are significant variations depending on economic status, there is clearly one thing on which everybody spends the most: housing. Housing accounts for 29% of the total income for the low and medium classes and just a bit less, 28%, for richer people.
Analyzing the data, it can be seen that those who earn more money spend approximately 17% of their total income on retirement savings, while the medium class spends just 10% and the lower class does not even reach 5%. Investing in education is also easier for the high class, reaching over 5% of the total, rather than for those with lower economic status, who do not even spend this amount.
In contrast, food at home, transport, and utilities are more important for people whose salaries are not so high, since they spend a vast quantity of their household income on them. Twenty-eight percent of the income of the poorest goes to transport, and the medium class spends just a bit more, 29%. In that case, the richest only spend 15%. Finally, another important aspect is the money spent on health; while those with lower incomes spend approximately 8% of their total earnings, the other groups spend just 6%.
Overall, it is obvious that people’s preferences when spending their money change depending on their household income. The only choice that the three groups have in common is housing, which is where they spend the most.