The chart below shows the average household spending pattern for households in three income categories as a proportion of their income. Summarise the information by selecting and reporting the main features, and make comparisons where relevant.

The bar chart shows how those on low, medium and high incomes spend their money. Both the differences and the similarities are striking. Housing costs consume almost a third of each

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’s

income

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and another 15-19% goes on transport.

While

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the high-

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earners are able to put 17% towards their retirement, and the medium

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10%, those on low incomes invest only three per cent of their

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in retirement funds. All categories spend a similar percentage of their

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on clothing (around 6%), eating out (less than 5%), and entertainment (4-6%). The lowest

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group

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spend a higher proportion on their health (8%), eating at home (12%) and paying for utilities (13%) but less on education, which stands at just three per cent compared with slightly more for the middle

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and over five per cent for the wealthy.

To sum up

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, each

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group

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assigns by far the largest portion of their budget to housing and a large portion to transport.

However

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, only the rich devote a significant share of their

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to retirement savings. Poor families,

on the other hand

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, spend more of their budget on basic necessities.