NPR’s Planet Money recently posted this cool infographic showing the differences between how the poor, the middle class and the rich spend their money. It might also reveal how they budget.
Turns out everyone’s rent is way too high, as each demographic puts more than 25 per cent of their monthly income towards housing. Each group also spends a lot on transportation & gasoline—the poor spend 20.4 per cent, while the middle class drops 21.3 per cent—not to mention a lot on food and healthcare. The poor spend the most on the latter category, with 8.2 per cent going toward health care and health insurance expenses.
Interestingly, the rich are doing a much better job at saving for retirement, beating both the middle class and the poor by socking away 15.9 per cent of their incomes each year. The poor fare worse on this front, only squirrelling away 2.6 per cent per cent. They also fall short when it comes to education, saving slightly more than the middle class (1.5 per cent versus 1.3 per cent), but significantly less than the rich (4.4 per cent).
Check out the figures below from the Consumer Expenditure Survey:
Business Insider Emails & Alerts
Site highlights each day to your inbox.