How Households Worldwide Spend Money

Citing data from Eurostat, a research arm of European Union, The Economist has an interesting chart showing how households in some of the world’s largest economies differ in their spending habits.

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As The Economist points out, the results say as much about the socioeconomic status of these countries as they do their culture and values:

Russians splash 8% of their money on booze and cigarettes—far more than most rich countries—while fun-loving Australians spend a tenth of theirs on recreation, and bookish South Koreans splurge more than most on education. Some of the differences are accounted for by economics. Richer places like America and Australia, where household expenditure is around $30,000 per person, will tend to spend a smaller share of their costs on food than Mexico and Russia, where average spending is around $6,000. And politics plays a part too. Predominantly private health care in America eats up over a fifth of each household’s budget, whereas the European Union, where public health care is common, only spends 4% on it. In Russia, government-subsidised housing and heating make living cheaper, and this means money is left over for the finer things in life.

For a partial breakdown of how individual E.U. member states fare, here is a similar chart (note the research was pre-Brexit):

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Again, the results speak to both socioeconomic disparities and cultural preferences:

In Malta, an island nation of 450,000 south of Italy, almost 20% of household expenditure goes on restaurants or hotels. In Lithuania that figure is 2.9%. Relative to much of the EU, Lithuania is a poor country with a per capita household expenditure of €7,500 ($8,500), half the EU average. Thus its people spend a larger share of their budget on food and clothing than any other EU country. Somewhat predictably the Dutch splurge most on recreation, while Greeks spend the least (a trait that pre-dates the financial crisis)—the money they save could perhaps be spent on more sensible endeavours like transport, or paying-off debt.

You can see the full dataset with all E.U. countries here.

What are your thoughts?

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