How Americans Waste Money, "24/7 Wall St. reviewed how Americans spend money. One of the conclusions of this analysis is that consumer spending is relatively alive and well, despite the recession. This may mean that Americans continue to be over-leveraged. US citizens have, in general, brought down their indebtedness.
However, holiday spending rose substantially from last year, and the extent to which Americans feel poor has declined now that the recession has ended. Americans spend about 15% of their household incomes on things that they do not need to satisfy their vices or to keep themselves amused.
We examined the changes in spending patterns over the course of one generation–20 years. Americans have certainly not cut back on vices because of the recent difficult economy, with the exception of casinos which were hurt badly by the slowdown. Money spent on alcohol and tobacco is about the same as it was two decades ago. Sin apparently is not beaten down by hard times."
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"24/7 reviewed how American households spend their money and identified categories in which the expenditures are purely discretionary as a way to set its final list of ways people spend money on unnecessary items. We removed all expenses that could be considered essential to maintain a reasonable living, good health and a steady job. Then, we identified the ten categories of unnecessary purchases which accounted for the largest part of U.S. household expenditures. We also broke the data into several demographics, including income before taxes, regions of the country, and the number of people in each household.
The ten categories of unnecessary purchase can be balanced against the ability of Americans to save money or pay off debts. The “average” American household which has an income of $63,000 spends more than $8,000 on goods and services it does not actually need. The credit crisis might not have been so bad if all that money had been put into savings accounts between 1989 and 2009, but the period would not have been nearly as fun."
TOP 10 LIST
10. Apparel Products and Services
9. Tobacco
8. Entertainment Equipment and Services (Nonessential)
7. Alcohol
6. Fees and Admissions
5. Lodging, Vacation Homes and Hotels
4. Pets, Toys, Hobbies, and Playground Equipment
3. Television, Radio, and Sound Equipment
2. Gifts
1. Food Away From Home
Even if we were to cut just the top three items, we'd be miles ahead of where we are today. As for #4, I'd add children to the list.
If I could speak to the author about energy usage, I'd have him/her add it to the list, because we don't really pay attention to WHEN we use energy---we just expect the power to come on when we flip the switch, no matter what time of day or night, and no matter the grid conditions. That convenience comes with a heavy price--to the tune of a 50% price increase.
If I could also speak to the author about FOOD waste and the amount of food people are dredging up in dumpsters and trash cans, I'd ask that this be added just as soon as a dollar figure could be assigned to it.
However, holiday spending rose substantially from last year, and the extent to which Americans feel poor has declined now that the recession has ended. Americans spend about 15% of their household incomes on things that they do not need to satisfy their vices or to keep themselves amused.
We examined the changes in spending patterns over the course of one generation–20 years. Americans have certainly not cut back on vices because of the recent difficult economy, with the exception of casinos which were hurt badly by the slowdown. Money spent on alcohol and tobacco is about the same as it was two decades ago. Sin apparently is not beaten down by hard times."
...
"24/7 reviewed how American households spend their money and identified categories in which the expenditures are purely discretionary as a way to set its final list of ways people spend money on unnecessary items. We removed all expenses that could be considered essential to maintain a reasonable living, good health and a steady job. Then, we identified the ten categories of unnecessary purchases which accounted for the largest part of U.S. household expenditures. We also broke the data into several demographics, including income before taxes, regions of the country, and the number of people in each household.
The ten categories of unnecessary purchase can be balanced against the ability of Americans to save money or pay off debts. The “average” American household which has an income of $63,000 spends more than $8,000 on goods and services it does not actually need. The credit crisis might not have been so bad if all that money had been put into savings accounts between 1989 and 2009, but the period would not have been nearly as fun."
TOP 10 LIST
10. Apparel Products and Services
9. Tobacco
8. Entertainment Equipment and Services (Nonessential)
7. Alcohol
6. Fees and Admissions
5. Lodging, Vacation Homes and Hotels
4. Pets, Toys, Hobbies, and Playground Equipment
3. Television, Radio, and Sound Equipment
2. Gifts
1. Food Away From Home
Even if we were to cut just the top three items, we'd be miles ahead of where we are today. As for #4, I'd add children to the list.
If I could speak to the author about energy usage, I'd have him/her add it to the list, because we don't really pay attention to WHEN we use energy---we just expect the power to come on when we flip the switch, no matter what time of day or night, and no matter the grid conditions. That convenience comes with a heavy price--to the tune of a 50% price increase.
If I could also speak to the author about FOOD waste and the amount of food people are dredging up in dumpsters and trash cans, I'd ask that this be added just as soon as a dollar figure could be assigned to it.
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