How to use expenditure data tables

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This section explains the calculations used most frequently to manipulate expenditure data from the Survey of Household Spending. Users are strongly advised to refer to this section before doing their own data analysis.

Expenditure data given in the tables are estimates based on the total sample, that is, on households that reported buying an item and those that did not. Data on percentage reporting are provided in the tables so that users can derive estimates of both the number of households reporting a purchase and the average expenditure of households that reported buying an item.

1. How to calculate the number of households reporting a purchase

Refer to the "Example data" table

To estimate the number of households reporting a purchase, multiply the estimated number of households at the top of the column by the percentage of households reporting and then divide by 100.

For example, to find the number of households in the lowest income group that had pet expenditures:

Description

2. How to calculate the average expenditure per household reporting a purchase

Refer to the "Example data" table

To calculate the average expenditure per household reporting the purchase of an item, divide the average household expenditure on that item by the corresponding percentage reporting and then multiply by 100.

For example, to find the average expenditure on pets by households that actually had pet expenses:

3. How to calculate average expenditure per person

Refer to the "Example data" table

To calculate the average expenditure per person on an item, divide the average expenditure per household for that item by the household size found near the top of the column.

For example, to find the average expenditure per person for food by those households in the lowest income group:

When comparing estimates of per person expenditure, note that family composition (number of children and adults) is also a factor in many expenditure patterns.

4. How to calculate percentage of total average expenditure per household (budget share)

Refer to the "Example data" table

To calculate the percentage of total average household expenditure represented by an item (budget share), divide the average expenditure per household for an item by total expenditure for all items and multiply by 100.

For example, to find the percentage of total expenditures represented by food purchases for households in the lowest income group:

5. How to combine expenditure items into your own groupings

Refer to the "Example data" table

The average expenditure per household for different items in a column can be added together to make new subtotals. (But do not add the "percentage reporting" values for different items.)

For example, to find the average expenditure per household in the lowest income group on food, shelter and clothing:

Average expenditure on food + clothing + shelter (lowest income group)

Example: $2,474 + $427 + $4,426 = $7,327

6. How to combine columns of data

Refer to the "Example data" table

Columns are combined by using the estimated number of households at the top of each column to calculate the weighted average of the values in the columns. To calculate the average expenditure across several columns, multiply the estimated number of households by the average expenditure for an item for each of the columns being combined. Sum the results. Then divide this total by the sum of the estimated number of households.

For example, to find the average expenditure on food for households in the lowest three income groups:

(Estimated # of households in lowest income group x average expenditure on food) +
(Estimated # of households in next income group x average expenditure on food) +
(Estimated # of households in next income group x average expenditure on food)

Estimated # of households in lowest income group +
Estimated # of households in next income group +
Estimated # of households in next income group

7. How to calculate total expenditure on an item for all households or a sub-group of households

Refer to the "Example data" table

To calculate how much was spent on average on an item for all households or households in a particular sub-group (e.g., households in the lowest income group), multiply average expenditure per household for an item by the estimated number of households at the top of the column.

For example, to find how much was spent on food by all households in the lowest income group:

Average expenditure per lowest income household for food x estimated number of households

Example: $2,474 x 463,590 = $1,146,921,660

Note that this aggregate is based on a sample that excludes households ineligible for the survey.

8. How to calculate percentage of total expenditure for all households (market share)

Refer to the "Example data" table

Expenditure share, or market share, is the percentage of the total expenditure for an item that can be attributed to a particular sub group of households, e.g., the percentage of all clothing expenditures made by households in the lowest income group.

It is calculated by dividing the total expenditure on an item for a given sub group of households (to calculate, see above) by the total expenditure on the item for all households and then multiplying by 100.

For example, to find the percentage of all expenditures on food made by households in the lowest income group:

Average expenditure per lowest income households on food x
Estimated # of households in lowest income group
x 100
Average expenditure for all households on food x
Estimated # of households for all classes

Example data
Summary average household expenditure by household income group