Americans Were Asked What They’d Do With An Extra Month’s Income. Nearly Half Would Spend None Of It.

Nearly half of American households say they would spend none of an unexpected payment equal to one month's income, instead choosing to save the money or pay down debt, according to newly released Federal Reserve research examining how families manage their finances.

Households said they would spend an average of just 22% of the additional money over the following year, save or invest 47% and devote approximately 30% to debt repayment. About 47% said they would spend nothing, while only 4% would use the entire amount for purchases.

The findings come from a study published October 9 by the Federal Reserve, using responses from its 2025 Survey of Consumer Finances. Researchers asked families how they would allocate a hypothetical payment equal to one month of their normal income.

A separate Federal Reserve study, released the same day, examined actual reported household spending across income and wealth groups, including affluent families often underrepresented in other surveys.

Together, the studies provide a picture of how Americans say they would handle additional money and how their existing spending habits vary depending on their financial circumstances.

What Would Americans Do With An Extra Month's Income?

The Federal Reserve asked respondents to imagine receiving an unexpected payment equal to one month of their normal family income and explain how they would use it over the following 12 months.

On average, households said they would save or invest 47% of the additional money, use approximately 30% to pay down debt and spend just 22%.

The median hypothetical payment was $7,000, while the average was $11,800, reflecting differences in household income.

For someone unexpectedly receiving $3,000, applying the survey's overall percentages would mean putting approximately $1,410 into savings, using $900 to reduce debt and spending $660.

The responses also showed that nearly 47% of households would spend none of the additional income, while only about 4% said they would spend the entire amount.

The figures reflect what respondents said they would do with a hypothetical payment, rather than how they behaved after receiving actual money.

The Richest Americans Would Spend The Smallest Share

The research found substantial differences in how households across the income distribution would use unexpected money.

Families in the bottom 10% of the normal-income distribution said they would spend an average of 28% of the windfall, compared with just 14% among the highest-earning 1%.

Households in the wealthiest 1% showed a similar pattern, saying they would spend approximately 15% of an unexpected payment.

Saving became more common as income increased. Families in the highest-earning 1% said they would save approximately 78% of the additional money, compared with savings shares generally ranging from 41% to 48% among households in the bottom two-thirds of the income distribution.

Debt repayment accounted for a larger share of the planned allocation among many households outside the highest-income brackets.

The differences illustrate how families with varying levels of income, savings and debt obligations would approach an unexpected financial gain.

The Richest 10% Account For 28% Of Consumer Spending

The Fed's second study offers a different perspective by examining how much American families actually reported spending in 2025.

Researchers introduced broader spending questions into the Survey of Consumer Finances, allowing them to compare household expenditures with income and wealth within the same survey.

The findings showed that families in the top 10% of either the income or wealth distribution accounted for approximately 28% of total measured consumer spending.

The top 1% of spenders accounted for 9% of all spending, while the highest-earning 1% received 19% of total household income and the wealthiest 1% held 32% of household net worth.

These groups were ranked separately, meaning the households spending the most were not necessarily those earning the highest incomes or holding the most wealth.

The study also found that approximately 30% of the wealthiest 1% were simultaneously among the top 1% for income and spending.

Lower-Income Families Devote More Of Their Spending To Food

The research also revealed differences in how families allocate their household budgets.

Among families in the bottom 20% of the income distribution, groceries accounted for approximately 30% of the spending measured in the study.

That proportion generally declined as incomes increased, even though wealthier households spent more money on food in dollar terms.

Higher-income families devoted larger shares of their spending to discretionary purchases, including restaurant meals, new vehicles, vacations and entertainment.

The researchers also found that approximately one-quarter of households had calculated savings rates at or below zero, meaning their spending and other outlays matched or exceeded their after-tax income.

The findings illustrate differences between households whose budgets are heavily focused on necessities and those with greater capacity for discretionary spending.

Financial Uncertainty Also Affects Spending Decisions

Income and wealth were not the only factors associated with how households said they would use additional money.

The windfall study found that families holding less than half a month's income in liquid assets would spend an estimated 22.9% of an unexpected payment, compared with 20.3% among households with greater liquidity, after adjusting for income.

Households uncertain about their future income also reported a slightly higher intended spending share, at 21.7%, compared with 20.1% among those who had a clearer idea of their earnings.

Financial knowledge was associated with another difference. Respondents who correctly answered all three financial-literacy questions said they would spend approximately 19.9% of the windfall, compared with 21.4% among those who answered at least one incorrectly.

The researchers cautioned that such comparisons do not establish that any single household characteristic directly causes higher or lower spending.

Both studies use information from the 2025 Survey of Consumer Finances, which includes detailed financial data from households across the income and wealth distribution.