11 Things Broke People Waste Money On That The Wealthy Wouldn't Pay A Penny For
These spending habits are more complicated than they seem.
ViDI Studio | Shutterstock There's a lot of judgment around the financial choices and habits that low-income households make on a daily basis. But if we're being realistic, it's not these small daily habits that are separating wealthy people's financial freedom from the average person's struggle. Paying for a treat for their kids or having a TV at home doesn't make a low-income person irresponsible, as not having financial comfort doesn't mean you have to suffer through life.
It's important to note that many of the things broke people waste money on that the wealthy wouldn't pay a penny for are not deliberate choices — they have less free time, opportunity, and freedom to make decisions in their best financial interests, because they're focused on survival. According to an Urban Institute study, nearly half of Americans were struggling to afford basic needs in 2017, and that number has only continued to climb drastically in recent years.
Here are 11 things broke people waste money on that the wealthy wouldn't pay a penny for
1. Tools for yard work and home repairs
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While wealthy people may have a bigger disposable income to purchase serviced labor for their basic household repairs and lawn work, low-income people tend to do it themselves to save money. However, that also means they're responsible for finding, buying, and repairing the household tools they need to complete these jobs.
Of course, this is another example of wealthy families being able to enjoy the benefits of their free time, relaxing and unwinding while low-income families do yard work or complete household chores and repairs.
2. Fast food
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Fast food and convenient food delivery are two of the things broke people waste money on that the wealthy wouldn't pay a penny for. Of course, it's not a deliberate choice, but a matter of convenience and accessibility. They have less free time while working long hours and sometimes multiple jobs, so whatever food options are close to their house is what they're typically relying on to feed their families at a low cost.
According to a study published in Health & Place, this disproportionate access to fast food is part of the reason why low-income families tend to struggle with obesity at higher rates. They not only have less free time to move their bodies and less money to spend on nutritional health options, they're reliant upon the restaurants and convenient foods in their communities — and it's usually not a sweetgreen location.
3. Flashy designer clothes
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According to experts from the University of Michigan, many low-income consumers waste money on flashy designer clothes and name-brand items to clutch onto status and prestige in their lives, despite not having the money to spend on these purchases.
Wealthy people are more likely to wear unsuspecting luxury items and simple clothing, while low-income people yearn for a sense of community and pride from their clothing, even if they're taking on debt to do so.
4. Lottery tickets
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Low-income consumers spend 33 times more of their income on lottery tickets than the rich, despite having less disposable income and financial freedom to do so. Of course, it's one of the things broke people waste money on, but oftentimes it's the instant gratification and need for a glimpse at hope that informs these purchases.
They're struggling with basic necessities, affording rent, and planning for the future, so a glimpse at a life-changing amount of money can feel like an escape from the burden of money stress in the current moment.
5. Bottled water
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Due to poor water infrastructure and quality in low-income neighborhoods, low-income families tend to spend more on bottled water than their wealthy counterparts — not because it's generally more convenient, but because it's the safest option.
It's one of the things broke people waste their money on, not because they're too "lazy" to fill up a water bottle or invest in a reusable one, but because they don't have the same opportunities and infrastructure as their wealthy counterparts — like clean tap water, water fountains, or clean refilling stations at work or in their schools.
6. Extended warranties
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Despite being advertised as the "responsible" and financially conscious option for buying big ticket items, research suggests that investing in an extended warranty is just not worth the money. According to the report from Consumer Protections, even expensive items like a new phone or a brand new car aren't worth the overpriced insurance deals — and, for the most part, the people who buy them never use them.
Wealthy people use their own savings and financial comfort as a "warranty" on items they want to replace, not an upsold version of insurance that's targeting financially insecure consumers.
7. The newest tech device
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Many wealthy people, despite having the disposable income to spend on new tech devices and gadgets, do more research before making big purchases, especially on things they're willing to invest on and use often in their daily lives.
According to Tom Corley, author of "Rich Habits: The Daily Success Habits of Wealthy Individuals," these new devices are one of the things broke people waste money on that the wealthy wouldn't pay a penny for — not because they don't have the means, but because they focus on quality over quantity.
They're not worried about asserting their status to a room with the newest iPhone or digital watch, they're more concerned about investing in items that add intentional value and quality to their lives.
8. Food delivery services
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Everyone's been in a time crunch at one point or another and ordered food on an app like Uber Eats or DoorDash, but it's often lower income people that tend to rely on these food delivery services the most.
Considering they're often working longer hours and have less free time than wealthy people to grocery shop, cook meals at home, and prepare for a healthy alternative to delivery, it's not surprising that this is one of the things broke people waste money on.
Wealthy people don't just have the freedom and luxury of money, they have free time. They can use that time to bond with their families, focus on hobbies, start a side hustle, or even cook a meal at home.
Of course, these financial choices for wealthy people aren't necessarily comparable for their low-income counterparts, considering they're living paycheck-to-paycheck and doing whatever they can to stay afloat.
9. Mobile games
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According to a 2022 study, people who struggle with impulsivity — especially when it comes to financial habits and decisions — tend to be more prone to spending on micro-investments like mobile games, in-app purchases online, and online shopping.
Considering it's typically low-income people who find escapism, distraction, and instant gratification in small spending habits like this, it's not surprising that it's one of the things broke people waste money on that wealthy people wouldn't pay a penny for.
However, it's important to acknowledge that there's a misconception around these purchases. People think these are the difference-makers between wealthy and low-income people when, in reality, it's an institutional problem, fueled by lacking financial literacy, support, and opportunity.
10. Vacations they can't afford
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Many Americans are still going on vacation, even though they can't afford it. It's fueled by societal pressures, status symbols, and burnout. It's one of the things broke people waste their money on that the wealthy wouldn't pay a penny for.
Yet, like many of the other examples, it's not necessarily a choice richer people have to make. They have the disposable income and financial freedom to spend on a vacation whenever they want to go, making it feel less like an impulsive purchase in the face of burnout and more like an intentional act of self-care and family bonding.
11. Paying minimums on credit cards
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Considering they're more likely to pay the minimum on debt and credit cards out of necessity, broke people are more likely to waste their money keeping up with interest payments and late fees. In fact, lower income credit card holders are also more likely to have higher interest rates, meaning they spend more on interest paying off their cards than wealthy people who rarely carry over any kind of balance month-to-month.
While paying more than the minimum on a credit card, if you need to carry over a balance, can help to reduce the amount of total interest you end up paying, low-income people usually don't have the freedom to do so, considering they're typically over-spending on credit lines to afford basic necessities like groceries and rent.
Zayda Slabbekoorn is a staff writer with a bachelor's degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
