Household Expenditure Patterns

Publisher Website
Google Scholar
Abstract
Family expenditures during different stages of the family life cycle (as indicated by the age of the family head) are analyzed to determine how consumer spending patterns vary. A model of expenditures for consumer goods is constructed, and a life cycle hypothesis of consumer spending is tested. Age of family head was found to have significant influence on expenditures for each of 17 budget items. Compared with nonaged groups, the aged spend more on food, household utilities, medical care, personal care, and gifts and contributions; they allocate less to clothing, house furnishings and equipment, automobile purchase and operations, education, and recreation. For shelter, household operations, and other transportation the patterns are mixed relative to expenditures by middle-aged and young groups. Some of the social and legislative implications of these findings—more accurate measurement of the effect of inflation on retirement benefits, for example—are suggested.