A large percentage of U.S. expenditures, regardless of the income of the particular households, goes on what economists categorize as luxuries.
People who make the most money spend the biggest chunk of their consumption on luxury goods, but even the poorest households spend a significant amount on luxuries, according to an analysis released recently by Deutsche Bank Research.
The wealthiest families (the top fifth of earners) spend around 65% of their consumption on luxury goods and 35% on necessities, according to the study, which looked at spending habits between 1984 and 2014. Middle-income households weren’t far behind: They spend 50% on luxuries and 50% on necessities.
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