I’m a Financial Advisor: 6 Things the Middle Class Never Wastes Money On

There are those expenses that the middle class is more susceptible to spending too much money on, like overspending on dining out or going on too many Target shopping runs for new clothes. On the flip side of the coin, the middle class is careful not to make certain purchases with their hard-earned cash — and some of these items might surprise you.

GOBankingRates spoke with Kyle Luetters, CFP and advisor at Moneta, to learn more about six types of expenses the middle class won’t spend their money on. Do you also find yourself steering clear of wasting money on these expenses?

Middle-class Americans will emphasize buying used cars instead of new vehicles for their transportation needs. Luetters said middle-class individuals typically opt for cars that are around three to four years old or cars that come in “off lease.”

“The majority of a car’s depreciation occurs in those first three to four years, so avoiding that hit is a key to wasting money,” he explained.

There are certain types of subscriptions and memberships that middle-class Americans will have, such as streaming services like Netflix and a gym membership.

What they won’t have, Luetters said, are luxury subscriptions. Think upscale gyms or fitness clubs or landscaping services like lawn cutting and spraying.

Those in the middle class with children are more likely to avoid wasting their money on participating in sports which have leagues that require traveling to other states to compete. 

The simple reason for this, Luetters explained, is that kids’ activities are expensive and the cost increases exponentially once travel is involved.

Middle-class individuals rarely, if ever, make it a regular habit to dine out at Michelin star rating restaurants. 

According to Luetters, their version of dining out will either mean heading to a fast-food eatery or a sit-down restaurant chain.

“Middle-class folks usually will send their children to public school once they reach kindergarten age,” said Luetters. 

“For many, they already help fund public schools through real estate taxes and paying private tuition on top of that would be something to not waste money on.”

When faced with the option to buy a name brand or a generic brand, the middle class will opt for generic over name brand. This is true of purchases across all sorts of departments, like grocery, household essentials and clothing.

Luetters said making the choice to shop generic or in-store brands saves the middle class money, often upwards of two-thirds the cost they’d spend on name brand items. 

Generic brands are also proven to work just as well as name brands. Store brand OTC medication like aspirin, for example, must be able to meet guidelines set by the FDA such as having the same active ingredients as name brand medication.