Racial/Ethnic Discrepancies in Household Overspending

An analysis of 6,113 households with four quarters of expenditure data in the 2004-2005 U.S. Consumer Expenditure Interview Survey found that 43% of households had outlays more than aftertax income, and 25% of households had outlays that were 127% or more of aftertax income. Black and non-Hispanic White households had the same proportion overspending, 42%, while 49% of Hispanic households overspent. Based on a logistic regression of overspending, controlling for income and other variables, Black households were less likely than non-Hispanic White households to overspend