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Saturday, May 24, 2008

What is the relationship between income, wealth, disposable income and age?


Wow, what a question for a Saturday morning. Of course there is no simple answer. Whilst marketers get excited about ‘wealth’ and ‘income’ the factor that should really get them going is “disposable income”. As the cost of essentials are going through the roof (i.e housing, food, utilities, debt servicing etc) the question at the top of the marketers "To Do List" should be, who have the spare bucks to spend on anything else?

Shall I give you a hint? Well it isn’t your average 18-34 year-old. The above chart is from the Future Foundation and I guess shows monthly income and expenditure (UK). Sorry, I don’t have any more details about the methodology. Anybody from the Future Foundation who can help out?

It shows the time when income rises above expenditure is older rather than younger. Since this was created I would guess the whole chart has moved to the right and that the expenditure line has increased.

Does anybody have some recent data on this subject ? Dick Stroud

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