The spending habits of individuals, whether rich, middle-class, or poor, vary significantly. It is not all about income though; sometimes, it’s about personal choices, lifestyles, and financial priorities. While there is diversity within each group, specific patterns emerge, showcasing commonalities in consumption.
What does middle class consistently spend money on, that the rich and poor don’t?
Middle-class Americans have common spending tendencies that distinguish them from the affluent and economically disadvantaged. These spending habits are not likely for the rich or the poor due to very different underlying reasons.
1. Unreasonable Debt
Many rich people know how to use debt to their advantage or avoid it altogether. Most poor people can’t even afford to quality for debt [or more debt.] The middle class tends to accumulate debt in student loans, mortgages, and car loans, majorly to their detriment.
2. More Schooling
The rich have enough money and resources not to worry too much about higher education, while some poor people see it above their reach. Most of the middle-class folks feel they have to invest in a good education if they’re to get ahead and reach their financial/professional.
3. More Property
Most economically disadvantaged people have no choice but to live in rented spaces, while the middle class is focused a lot on buying more property and apartments. This can be a blessing and a burden for them, although it’s getting harder for even the middle class to afford real estate.
The middle class will need to take on debt to buy a home or build their investment portfolio, while rich folks will likely be able to pay in cash competitively.
4. Latest Brands
The poor can’t afford brand names and will be okay with knock-offs or secondhand pieces. However, The middle class might feel they need to scramble for the latest luxury good, even when they can’t afford it. This sometimes adds to their debt and makes it hard for them to build up any savings.
5. Frequent Travel
While middle-class individuals may enjoy vacations, they might opt for more budget-friendly travel options than the wealthy or choose to save for one big trip every couple of years. The middle class has the advantage of being able to afford traveling (for now), but not as often or luxuriously as they’d like.
6. Expensive Automobiles
A money coach reveals that most middle-class people will go for expensive cars that are majorly financed by loans. She says, “Middle-class families buy more expensive cars on leases or longer-term loans.”
Most poor people buy used cars or low-end cars on credit to be able to afford them (if even then), while the rich make their purchases in cash.
7. Other Depreciating Assets
Many middle-class people invest in depreciating assets, perhaps in a bid to compete with the rich. Buying expensive boats, cars, and other flashy machines leaves most of them in an unending debt loop that lowers their chances of being rich.
8. Memberships and Subscriptions
It’s a common trend among the middle class to subscribe to many memberships and services for their convenience (think meal plans, workout plans, subscription boxes, etc.), some of which drain money.
9. Entertainment Subscriptions
There are many avenues to pay for entertainment today, and many middle-class citizens feel the need to add them all to their packages, even when they don’t use them often.
Other things, such as gym memberships, become unnecessary expenses if paid in high-end facilities and are rarely used.
10. Financially Supporting Grown Children
If their children don’t do as well as they expect, some middle-class parents empathize with them and end up paying their bills. The parents are nearing retirement by this time, and their retirement plans take a huge hit.
Kids of poor people would never expect much support from their already struggling parents, while the rich probably have trust funds already.
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JayDee Vykoukal is a writer, author, mom, and Doctor of Physical Therapy. She has been writing about everything motherhood and health-related since 2018 when her first daughter was born, and she wanted to stay home. She loves to research new topics and fun facts with her kids to teach them about the world.
