6 Things the Upper Middle Class Spends Money on That the Middle Class Can’t Afford
Written by
Cindy Lamothe
Edited by
Molly Sullivan
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Have you ever wondered what those with more financial means tend to spend their money on? If you’re in the middle class, it’s likely you’ve asked yourself this question before. How do those in the upper middle class live? And what can they afford that you aren’t able to access?
According to Ian Rodda, CFO of Page One Formula, the upper middle class has a distinct tendency to invest in experiences and services that improve their quality of life but are still out of reach for many middle-class people.
He said this includes luxury health and wellness getaways, tailored financial advice and special educational possibilities for their children.
“These purchases go beyond material things, indicating a strategic investment in personal and family development, wellbeing, and long-term financial security.”
Nicer Housing
“One thing that sets the upper middle class apart from the middle class is their housing budgets,” said Jake Hill, finance expert and CEO of DebtHammer Consolidation.
He observes that upper-middle-class people and families can afford larger, more luxurious homes than most members of the middle class.
“This is also true when it comes to rentals; upper-middle-class renters can afford luxury apartments in in-demand areas, many of which are out of reach for middle-class people.”
Karina Newman, real estate investor and owner of iBuyers, equally noted that those with higher incomes spend on upscale real estate.
“The upper middle class often invests in homes that are not just places to live but statements of success,” she explained. “These houses are larger and located in neighborhoods that are considered prime, featuring amenities like spacious lawns, top-notch security, and modern conveniences.”
She added that this kind of real estate represents a significant financial commitment, setting the upper middle class apart from the more modest homes that characterize the middle-class living experience.
Exclusive Home Furnishings
Although both the upper middle and middle class spend money on home furnishings, there are certain luxury items the middle class simply can’t afford, said Ann Martin, director of operations of CreditDonkey.
For example, she said the upper middle class is significantly more likely to have fine art or one-of-a-kind pieces on display in their homes.
“Meanwhile, these items are generally out of reach for a middle-class budget. Most middle-class homes will feature mass-produced artwork as part of their decor instead — still nice, but definitely more wallet-friendly!”
According to Melanie Musson, a finance expert with Clearsurance, the upper middle class buys home furnishings recommended by an interior designer. Whereas the middle class buys the furnishings they need based on what they can afford and what they find that fits.
House Cleaning and Other Home Services
“I have found that the upper middle class is where you start to see people spending more on luxuries and amenities that the middle class often can’t afford — or can’t afford as often,” said Carter Seuthe, CEO of Credit Summit Debt Consolidation.
He explained this can be something like a house cleaning service that comes weekly or every other week, landscaping services and more.
Frequent Travel
The upper middle class spends their money on travel, Musson said.
“The middle class may take a vacation each summer, but the upper middle class takes several trips a year to new and exciting places.”
She noted that overseas destinations and adventure travel are popular with the upper middle class.
Dedicated Investing
The upper middle class has more disposable income, and that allows them to be more involved with investing, said David Kemmerer, CEO of CoinLedger.
“Upper-middle-class individuals often have more diversified investment portfolios — including higher-risk investments and investments that require more money upfront, like real estate.”
He noted that most middle-class people are also involved in investing to some degree, but they have less disposable income to dedicate toward it, and that also causes them to focus primarily on lower-risk investments.
Exclusive Memberships
Memberships in exclusive clubs are a status symbol for the upper middle class, experts said.
“Whether it’s a golf club, a private fitness center, or a social organization, these memberships are not just about the activities they offer but also the exclusivity and prestige associated with them,” Newman said.
She also noted that the financial investment required for such memberships makes them aspirational but often out of reach for many in the middle class, which underlines the distinction in the different lifestyle choices.
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