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How Americans Spend Their Money, in One Chart

Goldhedge

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#1
How Americans Spend Their Money, in One Chart
Americans are notorious spenders. Compared to many other nations around the world, households in the U.S. have a particularly low savings rate, and 28 percent of American adults have no emergency fund. However, consumer spending accounts for 68 percent of the country’s GDP, making it essential for economic strength. Our newest visualization takes a closer look at how Americans are spending their money.



  • While this chart shows the averages across all American consumers, earnings and spending vary by factors such as location, gender, and age group. For example, data from the Bureau of Labor Statistics shows that the 45-54 age group has the highest mean salary ($109,366), while the 75 years and older age group spends, on average, more than they make ($43,181 spent vs. $38,786 earned).
  • Americans’ income is typically allocated to one of three places: taxes, savings, or annual expenditures (spending).
  • Most consumer spending falls into the larger categories of food, housing, transportation, healthcare, insurance, and other goods and services. Housing alone accounts for almost a third of spending.
  • The savings rate is calculated by subtracting annual mean expenditures from annual mean income after taxes.
The data from this visualization comes from the Consumer Expenditure Survey by the Bureau of Labor Statistics. The black bar on the far left of the chart shows the average income for the American consumer. As you go farther to the right throughout the visualization, it provides a greater level of detail for how that income is allocated. For example, it breaks down average income into taxes, spending, and savings (color-coded pink, blue, and green respectively). Then it breaks down spending into general categories, and finally into more specific categories. The average dollar amount spent is included with each section of the breakdown.

Top Consumer Spending by Category
1. Shelter - $11,747
2. Pensions & Social Security - $6,831
3. Food at Home - $4,464
4. Utilities - $4,049
5. Vehicle Purchases - $3,975
6. Food Away from Home - $3,459
7. Health Insurance - $3,405
8. Entertainment - $3,226
9. Other Vehicle Expenses - $2,859
10. Other Housing Expenses - $2,270

Changes to consumer spending will have far-reaching ramifications for the rest of the economy. Since there are warning signs that consumer spending is already starting to cool, some economists are concerned about problems down the road. For example, changes in consumer behavior are threatening traditional retail companies and have already led to nearly 200,000 lost jobs since the start of 2017. More recently, the trade war has been taking a toll on consumer confidence and that’s a serious threat to economic growth. Perhaps next year, the breakdown for the average American consumer’s spending will look very different than it did for 2018.

How do you think consumer spending will (or won’t) change in the near future? Please let us know in the comments.

About the article
Published: 10 October 2019
Authors
Juan Carlos
Editor
 

the_shootist

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#3
How Americans Spend Their Money, in One Chart
Americans are notorious spenders. Compared to many other nations around the world, households in the U.S. have a particularly low savings rate, and 28 percent of American adults have no emergency fund. However, consumer spending accounts for 68 percent of the country’s GDP, making it essential for economic strength. Our newest visualization takes a closer look at how Americans are spending their money.



  • While this chart shows the averages across all American consumers, earnings and spending vary by factors such as location, gender, and age group. For example, data from the Bureau of Labor Statistics shows that the 45-54 age group has the highest mean salary ($109,366), while the 75 years and older age group spends, on average, more than they make ($43,181 spent vs. $38,786 earned).
  • Americans’ income is typically allocated to one of three places: taxes, savings, or annual expenditures (spending).
  • Most consumer spending falls into the larger categories of food, housing, transportation, healthcare, insurance, and other goods and services. Housing alone accounts for almost a third of spending.
  • The savings rate is calculated by subtracting annual mean expenditures from annual mean income after taxes.
The data from this visualization comes from the Consumer Expenditure Survey by the Bureau of Labor Statistics. The black bar on the far left of the chart shows the average income for the American consumer. As you go farther to the right throughout the visualization, it provides a greater level of detail for how that income is allocated. For example, it breaks down average income into taxes, spending, and savings (color-coded pink, blue, and green respectively). Then it breaks down spending into general categories, and finally into more specific categories. The average dollar amount spent is included with each section of the breakdown.

Top Consumer Spending by Category
1. Shelter - $11,747
2. Pensions & Social Security - $6,831
3. Food at Home - $4,464
4. Utilities - $4,049
5. Vehicle Purchases - $3,975
6. Food Away from Home - $3,459
7. Health Insurance - $3,405
8. Entertainment - $3,226
9. Other Vehicle Expenses - $2,859
10. Other Housing Expenses - $2,270

Changes to consumer spending will have far-reaching ramifications for the rest of the economy. Since there are warning signs that consumer spending is already starting to cool, some economists are concerned about problems down the road. For example, changes in consumer behavior are threatening traditional retail companies and have already led to nearly 200,000 lost jobs since the start of 2017. More recently, the trade war has been taking a toll on consumer confidence and that’s a serious threat to economic growth. Perhaps next year, the breakdown for the average American consumer’s spending will look very different than it did for 2018.

How do you think consumer spending will (or won’t) change in the near future? Please let us know in the comments.

About the article
Published: 10 October 2019
Authors
Juan Carlos
Editor
Excellent post!!! :2 thumbs up:
 

the_shootist

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#4
damn, there must be a lot of gov workers -- 200-something per month for medical insurance for the whole 'consumer unit'
It's more like ~$300 month from that chart but your point is still valid. My part of employer provided health insurance costs over twice that much, not to mention the copays and deductibles that also come out of my pocket as FSA money
 

EO 11110

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#6
It's more like ~$300 month from that chart but your point is still valid. My part of employer provided health insurance costs over twice that much, not to mention the copays and deductibles that also come out of my pocket as FSA money
why quibble with fact?

200-something is accurate. 283 is math's confirmation of accuracy
 

TAEZZAR

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#7
I think the "other taxes" entry is way low.

TAX.png
 

TAEZZAR

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solarion

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Yeah...you gotta make A LOT more to pay a lot less bro. In communist Amerika being near the mean is toxic. Just don't.

The chart reflects an income tax theft rate of 14.49% ...which doesn't sound right. Think goobermint is stealing more than that, even if we pretend to not notice their stealth inflation tax.
 

TAEZZAR

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#15
Yeah...you gotta make A LOT more to pay a lot less bro. In communist Amerika being near the mean is toxic. Just don't.

The chart reflects an income tax theft rate of 14.49% ...which doesn't sound right. Think goobermint is stealing more than that, even if we pretend to not notice their stealth inflation tax.
ABSOFUCKINGLUTELY !!! :2 thumbs up::oriental: :pissgoobermint
 

TAEZZAR

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#16
Look at this shit !!

1570756678236.png
 

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#17
Average rent in commiefornia is $1400 as per rent cafe(+4% YOY by the way). These numbers make an annual shelter budget of $11.7k seem kind of conservative. Guess it depends on where you live/what you require, but certainly living near either coast is likely to see one shelling out a higher % of "income" to keep the rain off their backs.
 

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#19
The chart conceals how much they spend on interest. Did banksters make this chart?
and a thousand dollar note can soon become a two thousand dollar note over the course of a minimum payment payback across 3-5 years...that's large money
 

TAEZZAR

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#23
When you consider that everything you buy has a tax on it... how high is high taxes?
Your reply reminded me of this old analysis of taxes on a loaf of bread.

151 Taxes in a Loaf of Bread - MattPerman.com
mattperman.com/2009/04/151-taxes-in-a-loaf-of-bread
If people need any more concrete explanation of this, start with the staff of life, a loaf of bread. The simplest thing; the poorest man must have it. Well, there are 151 taxes now in the price of a loaf of bread — it accounts for more than half the cost of a loaf of bread.
If people need any more concrete explanation of this, start with the staff of life, a loaf of bread. The simplest thing; the poorest man must have it. Well, there are 151 taxes now in the price of a loaf of bread — it accounts for more than half the cost of a loaf of bread. It begins with the first tax, on the farmer that raised the wheat. Any simpleton can understand that if that farmer cannot get enough money for his wheat, to pay the property tax on his farm, he can’t be a farmer. He loses his farm. And so it is with the fellow who pays a driver’s license and a gasoline tax to drive the truckload of wheat to the mill, the miller who has to pay everything from social security tax, business license, everything else. He has to make his living over and above those costs. So they all wind up in that loaf of bread. Now an egg isn’t far behind and nobody had to make that. There’s a hundred taxes in an egg by the time it gets to market and you know the chicken didn’t put them there!
 

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#24
When you consider that everything you buy has a tax on it... how high is high taxes?
What is the difference between government and tyranny? You're used to government. It's only tyranny if you're not used to it.

Soooo...... What is the difference between taxes and tyranny? You're used to taxes. It's only high taxes if you're not used to it.
 

solarion

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#25
And of course little, if any, savings...and then they think they are going to retire someday.
It's a bit like watching sausage being made. In the above graphic, just 7.65% of gross is being put into "savings"(whatever that means). Now one can debate whether or no this is above or below the rate of inflation, but as inflation is cumulative, one needs not only a decent savings rate(depending on working years remaining) AND a way to combat the stealth inflation tax. Without both of these, a comfortable retirement will remain an elusive goal for most...as intended by the ruling class.

Most likely "savings" means something the goobermint can get their grubby hands on fairly easily anyway, so the potential exists for people to follow the rules, be pro-active and still be completely screwed over anyway...again, this is as intended. The right way is to escape the fiat currency plantation, but most still think that's tin foil hat territory.
 

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#26
I think the "other taxes" entry is way low.

View attachment 143139
Yes...my state income tax rate is 3.4% and the local is 1.5%...our state has little to no exemptions....so knock the $78k down to $70k and just the state and local income tax on that salary is almost $3500...then add $1700 in property taxes...and a 7% sales tax on everything you buy in indiana except unprepared food stuffs and PMs....you can almost expect another $1500 from sales tax....someone really messed that chart up
 

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#27
It's a bit like watching sausage being made. In the above graphic, just 7.65% of gross is being put into "savings"(whatever that means). Now one can debate whether or no this is above or below the rate of inflation, but as inflation is cumulative, one needs not only a decent savings rate(depending on working years remaining) AND a way to combat the stealth inflation tax. Without both of these, a comfortable retirement will remain an elusive goal for most...as intended by the ruling class.

Most likely "savings" means something the goobermint can get their grubby hands on fairly easily anyway, so the potential exists for people to follow the rules, be pro-active and still be completely screwed over anyway...again, this is as intended. The right way is to escape the fiat currency plantation, but most still think that's tin foil hat territory.

To prevent this:
SHAKE  DOWN.gif


Do this

SHOVELLING.gif
 

Buck

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#28
then follow it up with this:
:secret: