The affordability gap in housing helps to
reinforce generational wealth and
generational poverty. Families with greater
means are able to provide enriching
experiences and spend more on education
than families with lesser means.
These families may also be able to afford
for their children to take on unpaid
internships (an important pathway to
making connections and securing
employment in one’s chosen profession),
pursue graduate school education, and
engage in other experiences that lead to
higher educations and lifetime earnings.
In 2014, the Atlantic studied how the
richest and poorest 20 percent of
Americans spent their incomes after
controlling for housing and transportation.
The results reinforce this notion of how
resources are spent, with the wealthy
having the opportunity to invest in
entertainment and education, while the
lowest 20 percent seek to meet basic needs
(Figure 18).
Figure 18: The Biggest Spending Gaps Between the Top/Bottom Quintiles
Source: The Atlantic: How Rich and Poor Spend Money Today – and 30 Years Ago; April 3, 2014. 12
NOTE: This chart displays percentage of incomes; while both cohorts spend roughly three percent on
education, that three percent equals roughly $350 for the lowest quintile, while it represents more than $5,820
for the highest quintile.
12
http://www.theatlantic.com/business/archive/2014/04/how-the-rich-and-poor-spend-money-today-and-30years-ago/360103/
26