Originally Posted by
RedSun
Not sure about the above demographic spending. For very young people, like 22 to 30, single and professional, they tend to spend more compared to income. There is pressure to show girlfriend/boyfriend how rich they are.
Agree with the trend. People under the age of 25 spend more than they earn, even though that is the youngest total amount spending out of each age group. Not sure about the reasoning behind that but it's whatever.
Originally Posted by
RedSun
After they get married 30+, they probably start to spend less. They need to save for kids college and for own retirement etc.
People 25-34 spend much more total than those under the age of 25. However, the propensity to spend does decrease (so less spend relative to income).
Originally Posted by
RedSun
When folks reach 50+ or 60+ retired, they are at the prime of earning and prime of network. No more kids. Those people have more disposal wealth to spend....
Total spent (and income) begins to decrease in the age 55-64 bucket and only continues to go down from there.
Originally Posted by
RedSun
Chase learnt the hard lesson for pushing the CSR to the young and restless folks. AmEx can make the same mistakes to target those young urban cardholders. When folks get married or have kids, they probably do not use Grubhub or Uber that much....
I disagree that it is a mistake and disagree that Chase views the CSR changes as a loss for them. If anything it has just reaffirmed their belief that high-end credit cards are likely not the most profitable business for them to pursue. Personally, I am confident that the technology and data science teams at Chase (amazing tech team, new JPM campus in palo alto recruits SWEs just one step below the quality of big tech SWEs) and Amex (top tier data science talent) know exactly what they are doing.
Source: Bureau of Labor Statistics
https://www.bls.gov/opub/btn/volume-...ary-by-age.htm