How Wealthy Americans Spend Their Money in These 14 Categories

Americans with great wealth are able to spend money on things others cannot afford, such as collectibles, or spend vastly more on everyday items, including clothing and home improvement.

A new whitepaper from Spectrem Group examines very wealthy investors’ spending habits, looking in particular at items that for the most part are not necessities.

Spectrem collected data this year from 168 investors across the U.S. with a net worth of $25 million or more through mail and an online survey, completed by the person primarily responsible for making day-to-day financial decisions within the household.

The study notes that although very wealthy Americans buy the luxury items they want, they do not necessarily toss money at extravagances willy-nilly.

(Related: Wealthy Investors Show a Trump Bump in Confidence: UBS Poll)

The majority also contribute to charity. New research on wealthy donors’ philanthropic engagement and perspectives found that 91% of these households donated to charity in 2015, well ahead of the share of the general population that did so.

In the following breakdown of individual spending categories, the study notes when appropriate the difference between the spending habits of these wealthiest Americans and those collected in a separate study whose net worth is between $5 million and $25 million, not including primary residence.

1. Home Improvement

Over the last 12 months, investors with a net worth of $25 million or more spent a lot of money on home improvement:

• $0 — 8%
• $1 to $24,999 — 46%
• $25,000 to $49,999 — 20%
• $50,000+ — 27%

2. Household Staff

The wealthiest investors can afford household staff, such as maids, nannies, drivers and lawn maintenance personnel. Over a 12-month period:

$25 million+

• $0 — 9%
• $1 to $9,999 —30%
• $10,000 to $24,999 — 22%
• $25,000 to $49,999 — 21%
• $50,000+ — 18%

$5 million to $25 million

• $0 — 29%
• $1 to $9,999 — 67%
• $10,000 to $24,999 — 5%
• $50,000+ — 1%

3. Education

College: Spectrem noted that percentages will change over time as offspring either become old enough to attend college or graduate. Over the 12-month period, 64% of study respondents spent money on college education, and 12% spent more than $100,000.

Prep school: Not all of the respondents send their children to prep school, but 53% did pay prep school tuition and fees, and 11% spent more than $100,000.

4. Gambling

Over 12 months, only half of the study group gambled. Fifteen percent gambled less than $10,000, while 27% gambled at least $25,000.

5. Collectibles

About three-quarters of the study group spent money on collectibles in the 12-month period, while only a third of those with $5 million to $25 million did so.

$25 million+

• $0 — 27%
• $1 to $9,999 — 22%
• $10,000 to $24,999 — 13%
• $25,000 to $49,999 — 17%
• $50,000+ — 21%

$5 million to $25 million

• $0 — 67%
• $1 to $9,999 — 28%
• $10,000 to $24,999 — 4%
• $25,000 to $49,999 — 1%

6. Clothing