What Households Spent Their Money On
AFFLUENT SINGLES:
High Level of Spending
among Single-Person Households
JULY 1, 1996
Young men and women living on their own use a disproportionately large share of their income on clothing and dining out, while elderly people living alone spend a sizable amount on family and friends. Such were the findings of a groundbreaking study on single-person households carried out by the Management and Coordination Agency.
Even though one out of every four households consist of single men or women, household spending surveys until now have ignored the consumption trends of this group. This situation prompted the agency to launch a survey of 700 single-person households in January.
Major Force in Overall Personal Spending
According to the results, the average monthly expenditures of single-person households come to 190,994 yen (1,818 dollars at 105 yen to the dollar), or 58% that of households with two or more people. In per capita terms, people living on their own spend far more than those living in families.
The ratio of single-person households' expenditures to overall personal spending is believed to be as high as 15% or 16%, indicating that consumption by single men and women is a force on economic trends.
Leisure for Men, Fashion for Women
By type of expenditure, housing accounts for 14.4% of the total for single-person households, and leisure, travel, and other forms of culture and recreation, 14.2%. The respective shares for households with two or more people are far lower, at 6.5% and 9.6%.
At 19.8%, culture and recreational expenses represent the single biggest category of spending for single men under the age of 35, compared to just 12.4% for single women in the same age group. For their part, women use a hefty 10.2% for clothing, shoes, and other such goods.
The proportion of the total taken up by service expenditures, including dining out, travel, and sports, comes to 53.6% for single-person households, considerably more than the 39.8% for households with two or more people.
Spending by the Elderly
The monthly expenditures of households comprising single men or women 60 years of age or older come to 142,948 yen (1,361 dollars). Among such households, expenses for family and friends top all others, at 19.3%. This is thought to reflect the large amount of gift money given at weddings, funerals, and other such occasions and pocket money given to grandchildren.
In the coming years the number of single-person households is certain to surge given the trend toward marrying later and the graying of the population. The impact of such an increase will undoubtedly be an even higher ratio of service expenditures in total consumption.