High income households allocate smaller expenditure shares to necessities
December 17, 1998
In 1994-95, households with annual incomes of more than $90,000 allocated smaller shares of their money to necessities, such as food at home, shelter and utilities, transportation, and health care. Instead, higher-income households spent larger shares on such items as food away from home, personal insurance and pensions, cash contributions, and entertainment.
Higher-income households spent 15.5 percent of their incomes on transportation expenditures, compared with almost 19 percent for other households. Expenditures on public transportation—mostly airline fares- were a larger share of higher-income budgets, while expenditures on vehicle purchases and costs related to vehicle ownership took a larger chunk in other households.
Food expenditures accounted for about 11 percent of spending for high-income households, compared with more than 14 percent for other households. This difference occurred despite the fact that higher-income households spent a larger share on food away from home.
Higher-income households allocated 3.4 percent of expenditures on health care, some 2.2 percentage points less than the health care share for lower-income households.
Data on spending by income are produced by the BLS Consumer Expenditure Survey. For additional information, see Summary 98-10, "Issues in Labor Statistics: Spending Patterns of High-income Households".
Bureau of Labor Statistics, U.S. Department of Labor, The Editor's Desk, High income households allocate smaller expenditure shares to necessities on the Internet at http://www.bls.gov/opub/ted/1998/dec/wk3/art04.htm (visited December 07, 2013).
Spotlight on Statistics: Productivity
This edition of Spotlight on Statistics examines labor productivity trends from 2000 through 2010 for selected industries and sectors within the nonfarm business sector of the U.S. economy. Read more »