"Households earning the highest 20% of income before taxes made $264,510 on average, while the lowest-income quintile made $16,658 on average before taxes."
"In 2024, the top 20% of households spent about three times as much on housing costs as the lowest 20% did, about 38 times as much on personal insurance and pensions, and about five times as much on transportation."
"Lower-income Americans earning less than $40,000 were more likely to consciously pull back on their spending than those making at least $150,000."
"Around 28% of those making less than $40,000 reported changes in their circumstances, like employment or household size, as the main driver of how they adjusted their spending."
In 2024, the highest-income households earned an average of $264,510, while the lowest-income quintile earned $16,658. The top 20% spent significantly more on housing, personal insurance, and transportation compared to the lowest 20%. High-income households allocated a smaller share of their overall spending to housing, while lower-income households spent more on food and healthcare. Lower-income Americans are experiencing slower wage growth and are adjusting their budgets, with many reporting changes in circumstances affecting their spending habits.
#income-disparity #consumer-spending #lower-income-households #financial-challenges #budget-adjustments
Read at www.businessinsider.com
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