Where does the average American consumer spend the money?
The NY Times launched an interactive chart today that breaks down all the categories and percentages of spending by an average American consumer. The data is based on the Consumer Pricing Index which the Bureau of Labor Statistics collects from 84,000 prices and 200 categories, as reported by the paper, and which the Federal Reserve also uses as one instrument for its inflation-targeting policy by measuring consumer behavior and price changes. The chart, copied below from the NYTimes article, shows that 42% of the money is spent on housing, 18% on transportation, 15% on food, 6% on health care (more for the elderly), 6% on recreational activities, 6% on education and communication (cellphones), 4% on clothing and apparel (women spend more), and 3% left as miscellaneous. Recall that US savings is zero and thus not a penny is left for a dark day.
note. The actual chart is interactive and will show you more detailed segments as well as changes compared to previous year. Thanks for The Big Picture blog for making me aware of the NYTimes article.
note. The actual chart is interactive and will show you more detailed segments as well as changes compared to previous year. Thanks for The Big Picture blog for making me aware of the NYTimes article.
Labels: finance, united states
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