Spending Behavior - Caucasians Versus Multicultural
Spending behaviors of affluent Americans based on racial demographics were found and broken down by Caucasian, Hispanic, Asian, and African American. It was found that compared to minorities, Caucasian Americans are more likely to invest their savings in programs provided by their employers, like a 401k. It was also found that all racial groups tend to spend less on luxury vehicles in favor of SUVs and trucks, and will shop at cost-saving retailers such as Walmart and Target.
We started our search by looking for pre-compiled information about Americans who have net worths between $250,000 and $500,000. Most of the results that we found were from articles detailing the spending habits of Americans with a net worth of $250,000 and above. We used these results because we found that spending behavior does not change much beyond the $500,000 net worth line, except for taxes. We found that most Americans in this bracket do not have much flexibility in spending when it comes to mortgages, child care, and student loans. Affluent Americans will still shop for packaged goods at Walmart and Costco like lower-income Americans and will forgo luxury vehicles for SUVs and trucks. We found that a top priority of theirs is saving money. Since we needed to find both similarities and differences, we then searched for this information based on white and 'multicultural'. We didn't find any information exactly on 'multicultural', but we found a breakdown by White, Hispanic, Asia, and African American. With these four demographics, we searched for the spending power of each and were able to find pertinent information.
A majority of affluent Americans are more likely to be married and have a two-income household. Affluent Americans, broken down by racial demographics, are 74% white, 10% Hispanic, 9% Asian, 6% African American, and 1% Other. Across all demographics, affluent Americans spend their money on education and travel. They are also likely to invest their savings into 401K programs provided by their employers. Areas of improvement for their budgets usually fall under food, car payments, charitable giving, lessons for children, and vacations. Their largest expenses are usually mortgage payments, child care, student loans, and taxes. They will forgo expensive vehicles to purchase trucks and SUVs by Ford and Jeep and will buy packaged goods at dollar stores and other bargain retailers such as Walmart, Target, and Costco.
BEHAVIORS OF Caucasian AMERICANS
Caucasian Americans have long been the majority with assets between $250,000 and $500,000, but they are becoming a smaller majority. They are the group most likely to invest more in work-sponsored savings plans and in stocks and bonds. They also spend more money on digital technology, cell phones, watches, and communication devices. Caucasian Americans are increasingly buying multicultural products, while decreasingly buying luxury goods and high-end fashion.
BEHAVIORS OF HISPANIC AMERICANS
Hispanic Americans, in general, tend to shop for products that reflect themselves and their values. They are mostly bilingual and usually spend money on products that reflect that. High net worth Hispanic Americans are usually early adopters of emerging technology, and they are increasingly shopping for more fashion-forward items and luxury goods, compared to their Caucasian counterparts. They are also more likely to spend money on personal stylists and private shopping.
BEHAVIORS OF ASIAN AMERICANS
Asian Americans are the most educated and affluent US racial and ethnic group. They actively shop online and are early adopters of technology and personal grooming products. Just like Hispanic Americans, they tend to look for more fashion-forward luxury goods and are more willing to spend their money on personal stylists and personal shopping experiences.
BEHAVIORS OF AFRICAN AMERICANS
Wealthy African Americans will invest their savings on CDs, savings bonds, real estate, and life insurance. In terms of spending, they tend to spend their money with brands they perceive as more socially conscious. They tend to spend a lot on consumer packaged goods like baby food, personal hygiene products, and deodorizers.