Low-income families spend 40% of their money on luxuries

http://www.marketwatch.com/story/low-income-families-spend-40-of-their-money-on-luxuries-2017-06-28

by mudil • 9 years ago

8 6 9 years ago

imba404• 9 years ago

Odd definition of luxury goods, which makes me wary of the division of necessity vs luxury:

The Deutsche Bank Research report defined luxuries as “goods or services consumed in greater proportions as a person’s income increases” and necessities as those goods or services that make up a smaller proportion of spending as a person’s income increases.

madcaptenor• 9 years ago

This is a technical definition in terms of "elasticity of demand": see https://en.wikipedia.org/wiki/Income_elasticity_of_demand . Unfortunately it doesn't agree with what normal people hear when they hear the word "luxury".

sharemywin2• 9 years ago

so the article basically restated the definition of luxury. The rich spend more than the poor on luxury items.

1812Overture• 9 years ago

Luxuries include: car, insurance, childcare, telephone, internet, and household supplies. We're not talking about caviar and Coach bags here.

Low-income families spend 40% of their money on luxuries

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