SAVI Reports - Page 30

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 26