Aging and spending patterns
FROM TOYS TO TOMBSTONES: How The Spending Patterns Of Americans Change Throughout Their Lives
Excerpt:
HS Dent, an economic forecasting firm, compiled Census data spending behavior and presented them as demand curves, which measure average annual expenditure for a given product over age.
HS Dent's charts couldn't be more simple, but we can't stop looking at them. They offer an elegant glimpse into how spending really evolves over time.
What are some things we learned? Well, as we mature we use a lot less plastic cutlery.
But our towels get a lot older and cheaper. Not surprisingly, alcohol consumption is pretty steady from ages 20 to 70.
And it looks like we do all of our vacationing long before retirement.Comment: View article for charts. What I've noticed:
- Becoming an empty-nester really impacts expenses. When the kids move out (and it's been over 10 years for us), the phone bill (we used to have 2 lines!), utilities, groceries, and auto expenses really go down.
- Auto insurance is probably the # 1 saver for us!
- Auto expenses: We once had three cars. Now 2. (I think we could live with one but I don't want to get rid of my truck!)
- Groceries is right up there
- Clothing is in the mix too!
- On restaurants ... we rarely eat out unless we are traveling. We bag lunches to work
One thing I'm noticing as I get older--and this probably has a LOT to do with the statistics--is that I'm finding a lot of what I bought in my twenties and thirties doesn't need to be replaced. At least the stuff that I was thinking about before I bought it is still fulfilling its purpose well. Other stuff....well, that I'm replacing. :^)
ReplyDeleteSo the truck is your midlife crisis vehicle? :^) Mine might be a carbon fiber bicycle that I'll get as soon as my Trek and my Schwinns wear out, and as soon as I've...oh never mind. :^)