How do Americans spend their money? English essay

the biggest expense is housing. It accounts for about 33.5% of total consumption. Especially in a big city like new york, two thirds of people's income is contributed to rent or loans.

in the data of 213, the proportion of people owning houses was 63.7%, which was lower than that of 64.3% in 212. Due to different state laws, the amount of tax payable is also very different. Low-income families who live comfortably in tax-free States will basically starve to death in cities with heavy taxes and high prices. In order to have security after retirement, children can afford to go to college and take a vacation every year. Many American families are more rational about buying a house or renting a house.

if you have decided to settle in a place for a long time, buying a house may be a better choice. So how big a house can you afford? Experts suggest that the cost of mortgage should not exceed 28% of the monthly salary, which is basically the same as the data given above of 33.5%.

Some foreign media have pointed out that the young people in China live far worse than the older generation, especially the young people under the age of 25 are facing the dilemma of poor employment and low housing standards. In the middle of this year, the phenomenon of "abandoning the house and cutting off the supply" and the increasingly distinctive standard of "having a car and a house" fully illustrate the pressure of young people in China at present. The reason why some of my friends don't want to go back to China is because there is too much pressure at home. This pressure comes not from work or family, but from society. When friends meet, they will discuss houses and cars to judge the happiness index of life.

In contrast, the general environment in the United States is slightly better, because most young people drive ordinary used cars and live in rented houses. Who will laugh at who? Despite this, this 33.5% housing expenditure still makes Americans complain.

in addition, the second highest item of expenditure is transportation, accounting for about 17.6%. In some small and medium-sized cities, most people will choose to drive, so the fuel cost and repair cost are fixed expenses every year. People in big cities will basically choose public transportation. Bus or subway is not only acceptable in terms of cost, but also saves time. Because in the most congested areas, it is common to drive for two or three hours in half an hour.

Americans eat at home 6% of the time and eat out 4%.

The second biggest expense is eating and drinking, and the cost of daily diet accounts for about 12.9%. Americans eat at home 6% of the time and eat out 4%. This also shows from one side that the price in the United States is not high, at least the price of food and beverage is within the range that ordinary people can bear.

For working-class people in China, apart from holidays, they should not go to a restaurant for a meal when they have nothing to do. The consumption difference between China and the United States is not only affected by price factors, but also by cultural factors. Small bars and fast food restaurants in the United States often have "happy hours". Most of the so-called "happy hours" are after work in the middle of the week, and customers will enjoy some very powerful discounts. On weekends, it has become a habit for Americans to choose restaurants to have dinner with friends and family.

In fact, Americans still know how to "nip in the bud", and 1.8% of the expenditure is spent on personal insurance and pension. In the United States, the largest 3 pensions have reached the scale of 6 trillion. In 28, Morgan Stanley counted that the global pension exceeded 2 trillion. We all know that the population of the United States is less than a quarter of that of China, which shows that the amount of its pension is quite large.

And in the world, the American pension system is unmatched. Mainly divided into two forms, one is a defined contribution plan for pensions, and the other is a defined benefit plan for pensions, which is also referred to in a broad sense.

The defined contribution plan of pension is mainly the employer's guarantee to establish an account for each pension participant, and the more common one is the 41K project, which is similar to the enterprise annuity in China. The money turned over can be used for investment, such as stocks, and the return will increase or decrease in the corresponding personal account. This kind of plan is very popular in recent years, especially in the private sector.

Another defined benefit plan is to put money into a trust fund and get a pension through the corresponding calculation formula. In other words, such benefits will not be available until retirement. This statutory defined benefit plan includes all forms of pension except defined contribution plan, so it has no personal account.

in addition to the old-age insurance guaranteed by business owners, there are two aspects: the state and individuals. The social security and welfare system for different groups of people in the United States are relatively perfect, and the coverage rate of retirees is as high as 95%. On the other hand, families or individuals will also buy related pension insurance products. IRA, which is usually mentioned, is a kind of individual retirement plan. The 1.8% we mentioned earlier is the insurance expense besides the national basic guarantee.

At present, the most common investment for Americans is pension, while other financial management methods such as mutual funds, stocks and bonds are gradually decreasing in recent years. In addition to financial investment, a considerable number of Americans have invested their money in property. According to statistics, the average net worth of homeowners is around 17, dollars, while the average net worth of renters is 4,8 dollars. Obviously, every country has people who choose to preserve the value of their houses. In addition to real estate, they certainly have a variety of real estate investments.

Other expenditures that account for a relatively large proportion include health care 7.1%, entertainment 4.9%, and clothing and service consumption reaching 3.1%.

apart from the objective factors such as price and inflation, the most important ones are the consumption concept and traditional values. Like families in China, there are certainly quite a few families with children in the United States who will prepare a sum of money for education, which may be just ordinary savings or some kind of education fund.

Although there are more and more "moonlight clan" in China, there are still many young people who make detailed plans for their income, and put part of their salary in the bank, and then control the rest by themselves. There are few young people in the United States who have the concept of saving money. They probably won't give up Starbucks coffee or a martini in a pub to save a few dollars.