Comparing Characteristics and Expenditures of Consumer Units in Selected Income Ranges

Abstract

[Excerpt] Beginning with the publication of the Consumer Expenditure Survey (CE) 2003 data, several new, higher income ranges were shown for the first time. As incomes have continued to rise over the years, the larger number of higher income consumer units1 occurring in the sample allowed for the publication of these new classes. Using 2003 data, this article compares characteristics and expenditures of those in the highest income range, $150,000 and over, with expenditures and characteristics of those in the range of less than $70,000. A majority (63.9 percent) of consumer units in the CE had an average annual income of less than $70,000, whereas a small number of consumer units (3.5 percent) reported incomes of $150,000 and over. As one might expect, differences in demographics and in the way people spend their money abound between these two groups, although there are some similarities as well.