U.S. Department of Labor

Bureau of Labor Statistics

Spending Patterns of High-income Households

Summary 98-10

November 1998

A

lthough, less than 6 percent of the

Nation’s consumer units1 (CUs) had

 annual incomes of more than $90,000

in 1994-95, these households accounted for

over 14 percent of total annual spending. Highincome households spent about $405 billion

of the $2.8 trillion total outlays of complete

income reporter households.2

These high-income households, on average,

spent more than other households3 (see table),

and they allocated their expenditures differently (see chart). Households with annual incomes of more than $90,000, allocated larger

shares to food away from home; housing operations, supplies and furnishings; personal insurance and pensions; cash contributions; entertainment; and apparel and services. Households with lower annual incomes allocated

larger shares to food at home, shelter and utilities, transportation, and health care.

Housing. High-income households are more

apt to be homeowners (90 percent) than are

other households (60 percent). Additionally, a

far larger percentage of the high-income

homeowners have mortgages. This may be

due in part to a smaller number of retirees in

the $90,000 and over group, and the likelihood

that many retirees have paid off their mortgages. On average, high-income households

spent about $15,000 more on housing than other

households. However, the share of total spending on housing by the two groups was very

similar—about 31 percent each.

Housing expenditures include those for shelter (an owned or rented dwelling) and utilities,

and household furnishings and equipment, operations, and housekeeping supplies. And it is

among these types of housing items that the

higher-income groups and other groups begin

to diverge. High-income households allocate

smaller shares to shelter and utilities, and more

to other household goods and services.

Food. Households with annual incomes of

$90,000 or more allocated just over 11 percent

of their total expenditures on food and 51

percent of that on food away from home. The

figures for the other households were 14

percent and 37 percent, respectively.

Transportation. On average, high-income

households spent more than twice as much

($12,521) on transportation than did other

households ($5,690). These outlays, however,

reflected less than 16 percent of the high-income household’s total expenditures and

almost 19 percent of the other household’s total spending. Households with annual incomes

under $90,000 allocated larger shares to specific transportation items such as vehicle purchases and the costs related to vehicle ownership, while expenditures on public transportation, fueled mostly by airline fares, were a larger

share of higher-income budgets.

Health care. As with transportation, highincome households spent considerably more

on health care, than did other households. Expenditure shares, however, were 3.4 percent

and 5.6 percent, respectively.

Personal insurance, pensions. This category of expenditures, the majority of which is

composed of pension and Social Security contributions, garnered a considerable 16 percent

share of the high-income household’s spending

compared to about 10 percent among other

households. This difference may be related to

demographics. Younger and already retired

households tend to have lower incomes and are

less likely to allocate funds to these items.

Cash contributions. High-income consumer

units earmarked 5 percent of their expenditures

to cash allotments to persons outside of the

household, charities, churches, and other organizations. Other household groups made

contributions totaling almost 3 percent of their

expenditures.

For more information about the data presented

here, contact Valerie Vannett in the Division of

Consumer Expenditure Surveys at (202) 606-

6900, or by e-mail (Vannett_V@bls.gov).

Consumer expenditure data also are available

Chart 1. Selected shares of total expenditures: Households with incomes of 90,000 and over 

and those with less than $90,000, Consumer Expenditure Survey, 1994-95.

5.6

18.9

3.4

5.0

5.5

31.2

 9.5

14.4

31.3

5.1

2.9

4.9

11.2

15.5

15.6

5.9

0 5 10 15 20 25 30 35

Health Care

Cash Contributions

Entertainment

Apparel and Services

Food

Transportation

Personal Insurance, Pensions

Housing

$90,000 and over

Less than $90,000