❝ Expenditures are a key but often overlooked element of family balance sheets. In measuring household financial security, significant attention is typically paid to income, but much less to whether those resources are sufficient to cover expenses. To begin addressing this gap…this chartbook uses the Bureau of Labor Statistics’ Consumer Expenditure Survey to explore household expenditures, examining changes in overall spending and across individual categories from 1996 to 2014. It also details the differences in expenditures by income, with a particular focus on the degree to which households have slack in their budgets that could be devoted to savings and other wealth-building efforts.
This analysis focuses on the working-age population, which includes survey respondents or their spouses who are between the ages of 20 and 60. For the purpose of examining differences in spending by income…
The analysis shows that both median income and expenditures contracted after the Great Recession, reflecting the economic turmoil of the country. By examining household spending, this research helps to shed light on family financial security over time, and especially in recent years.
Read it and weep.