the poor are more frugal than the rich

[xchrom]

http://www.nationofchange.org/poor-are-more-frugal-rich-1398260907



The good news: Americans are spending more. The bad news: that’s only true for the well off, as the poor are spending less than they were before the crisis.

Between 2008 and 2012, the top fifth of income earners, or those who make more than $150,000, increased their spending by more than $2,300, according to the Bureau of Labor Statistics. That makes up nearly half of the country’s entire increase in expenditures. But over the same time period, the bottom fifth, or those making less than $30,000, actually decreased their expenditures, spending about $150 less.



That decline is driven by the poor buying about $150 worth less in clothing, although they have also decreased spending on entertainment, personal care, alcohol, and even reading. The rich, for their part, are spending more on alcohol, personal care, and reading and have made much more modest decreases in entertainment and clothing spending.

It also turns out that the poor aren’t just spending less, but they’re also trying harder to save their money. A survey from Gallup finds that while overall Americans have become much more interested in saving than in spending since the recession, there are big differences by income level. Those who earn less than $20,000 are more than three times as likely to prefer putting money away to spending it. The gap is much narrower for those who make more than $75,000 a year.

[2naSalit]

1. ...out of neccesity.

If you have no access to cash or credit...