Middle-class people have mortgages, vehicle debts, and student loans, which can cut into their discretionary spending and savings.
Additionally, middle-class families generally allocate a large percentage of their income to private schools and college tuition.
When it comes to the middle class, one of the most common things they spend money on is real estate.
Middle-class families frequently opt for brand-name items that aren't necessarily luxurious but might nevertheless add to their monthly expenses.
Mid-income households tend to lease or borrow more expensive cars, according to money coach Mary Vallieu.
Instead of the rich's travel experiences or the poor's staycations, the middle class frequently opts for package trips that offer good value for money.
Poor families may choose basic or used products out of necessity, whereas the middle class prefers mid-tier technology, slightly expensive appliances, and cars that combine luxury and functionality.