There are a lot of things that Americans must spend their money on, but depending on the amount of their income, they may be able to allocate their funds differently. A family’s level of income will depict how much they can spend on things other than their fixed expenses. Things like education and clothes may take the backseat when it comes to available funds, while the upper-level incomes are able to spend more.
This infographics breaks down families into three main categories. The poor is considered to make an average between $15,000 to $19,999 per year. The middle-class is considered to make between $50,000-$69,999 per year. The rich is considered to make anything above $150,000 per year. Their income is broken down by percentage to see how much they spend in these different categories: housing, health care and insurance, transportation and gas, clothing, education, entertainment, restaurants, groceries, utilities, and savings for retirement.
The charts show how income make a big difference in those categories that are concerned with building for the future, namely Education and Savings for Retirement. The poor and middle-class allocate only 1.5% and 1.3%, respectively, of their household income on Education, while the rich are able to invest 4.4%. Studies have long demonstrated a relationship between education levels and future income so these charts would suggest a challenge of moving from one income bracket to another. Additionally, the rich are able to direct 15.9% of their household income towards savings and retirement in stark comparison to the poor who are only saving 2.6%. These two metrics paint a picture of one sector of the country who is treading water and another who is moving forward into the future.
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