Household income

This chart shows us how households that earn a certain income allocate their expenses.

 We can observe that the largest part of income for all categories combined is attributed to housing : between 25 and 30% of revenues are attributed to it.

A significant portion of income is attributed to housing  because of high housing costs, limited supplies in desirable areas, location preferences, economic factors, or income inequality.

In second position , we have transport which reaches almost 20% for low and middle income households and 15% for high income. Its can be explain by some expenses like vehicle ownership, maintenance, fuel, insurance, and public transportation fees, especially in areas with limited options or long commuting distances.

A significant portion of income is often attributed to transportation due to several factors:

1. Vehicle ownership and maintenance costs: Purchasing a vehicle, maintaining it, and paying for fuel, insurance, and repairs can consume a large portion of an individual's income.
2. Public transportation expenses: Even without owning a vehicle, using public transportation such as buses, trains, or subways can still be expensive, especially for daily commuters.
3. Location and commuting distance: Living in areas where public transportation is limited or nonexistent often requires owning a car, leading to higher transportation expenses. Additionally, longer commuting distances can increase fuel and maintenance costs.
4. Urbanization and congestion: In densely populated urban areas, congestion can lead to increased travel times and fuel consumption, adding to transportation expenses.
5. Limited transportation options: In some regions, there may be limited transportation alternatives, forcing individuals to rely on personal vehicles or expensive transportation services.
6. Economic factors: Fluctuations in fuel prices, inflation, and changes in income levels can also impact transportation costs.

Overall, the combination of these factors contributes to transportation being a significant expense for many individuals and families, often requiring a substantial portion of their income.

We can also observe that the less money we earn, the less we save for retirement.

There is a big gap between the retirement savings of people with high incomes and those with low incomes. Households with low incomes allocate less than 5% of their income to this category while those with high incomes allocate more than 15%.

This gape can be explain by the fact that individuals with lower incomes have less disposable income available for saving towards retirement after covering their basic living expenses. As a result, they are able to save less or may not be able to save at all for retirement compared to those with higher incomes who have more financial resources available for savings.

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