Have you ever wondered how people spend their money or hard-earned income? Do you spend the bulk of your money on food or on rent?
The World Bank organized a worldwide study entitled “Global Purchasing Power Parities and Real Expenditures 2005 International Comparison Program” spanning 2003 – 2008. The results gave an in-depth view or perspective on global consumption patterns in 12 categories or buckets such as education, health and food and nonalcoholic beverages.
Take a look at the data below extracted from the report. The table shows the estimated percentage of income people spend on the various categories. The countries displayed here are chosen randomly for comparison purposes only.
Comparison Table
Country……..Food and……..Clothing and……..Health(%)…..Recreation and……Education(%)
………………Nonalcoholic…..Footwear(%)…………………….Culture (%)
………………Beverages (%)
Ethiopia……….54.5……………….6.1………………2.1………………0.6………………..3.5
Egypt………….42.5……………….7.9…………….. 5.0 ……………..2.6…………………7.7
Malaysia………17.3……………….2.2………………4.9 ……………..4.1…………………9.0
Singapore…….. 8.2……………….3.5………………8.4……………..12.2………………..8.0
United States….6.2……………….4.2……………..18.3………………8.6…………………8.5
United Kingdom..7.0……………….4.6………………9.9 …………….10.7………………..5.9
China…………..24.1………………6.3………………6.2………………4.7…………………9.8
Indonesia………41.6………………3.6…………….. 3.0………………1.7…………………5.6
Under food and nonalcoholic beverages that excludes any purchases made at restaurants, hotels or bars, people in Ethiopia, Egypt and Indonesia spend a sizeable chunk of their income on food and drink. As the tourism industry expands across Ethiopia, Egypt and Indonesia there is likely to be a growing number of luxury hotels and an increased spending in these countries.
The second category shows that we Malaysians can be frugal when it comes to spending on clothing and footwear which amounts to 2.2% only of our income.
The health category shows the Americans or U.S. consumers spending a good chunk of money on health care which is not surprising due to their problematic health care system.
The Singaporeans do not mind allocating a high percentage of their budget on recreational purposes at 12.2% and the U.K. consumers comes second at 10.7% based on the table above.
Education wise, the Malaysians, Singaporeans, Americans and Chinese spend more or less comparatively in this area. It is not surprising to note that impoverished Ethiopia shelling out very little on education and a lot less on health and recreation.
The balance of Malaysian money
Out of curiosity, I also check out where the rest of the Malaysian ringgit is going. We allotted part of our income as follows:
* Alcoholic beverages, tobacco, and narcotics……………………………………………..1.5%
* Housing, water, electricity, gas and other fuels…………………………………………17.5%
* Transport …………………………………………………………………………………….12.7%
* Furnishings, household equipment and maintenance……………………………………4.7%
* Communication………………………………………………………………………………..5.2%
* Restaurants and hotels………………………………………………………………………7.6%
* Miscellaneous goods and services…………………………………………………………13.4%
You can read the rest of the World Bank detailed report by clicking here.
Read other articles by Jacquelyn at WParent.com on parenting matters and Tips4Everyone.com on solving marriage problems.
26 replies to "Global Spending: How People Spend their Money"
Great sharing, thanks.
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
Your assumption that the spending in Ethiopia and Egypt on food and non alcoholic beverages will increase because of an increase in luxury hotels is completely off base. The are forced to spend such a high percentage of their income on those necessary goods because of the proportionally lower salaries earned in comparison to food and beverage prices. Such spending is not voluntary but necessary for survival.
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
This is really interesting. Nothing like a comparison table to really put things in perspective for you.
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled Global […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled […]
Hi KC
Actually, I am a new kid on the block in the blogging world. It’s great to see that you have done well in blogging.
I am honoured to know that you have bought all my books. Have you read the latest Roadmap to Financial Freedom?
I bought your new book a few weeks ago. Although yet to read it, I am sure that I will learn something from you every time I read your books.
I also agree with Hean. Malaysians would not need to spend so much on transportantion if we have a better public transportation system. When I was in London last month, I didn’t have to drive a car or even take a taxi in London city. I can take the subway and walk to any place I want to. That’s what we call world class public transportantion system.
Hi MR. Yap Ming Hui,
It is great to see you here. I bought all your books.
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled […]
[…] presents Global Spending: How People Spend their Money posted at KCLau’s Money Tips, saying, “Results from a World Bank study entitled […]
[…] presents Global Spending: How People Spend their Money posted at KCLau#8217;s Money Tips, saying, Results from a World Bank study entitled […]
I agree with Hean. I believe we have no other option but to own car(s) simply because lack of proper public transport system. BTW, cars in Malaysia are not cheap. This might be another factor that caused high expenditure on transportation.
Malaysia public transport system is slightly not good enough. Hence, may cause some people prefer to have own car.
no doubt that Malaysians spend a lot on transportation. The funny thing is our country is a car maker.