How Different Households Spend: 3 Big Ideas From ‘The Last Transaction’ Report

The economic landscape has been particularly turbulent over the past year, and its effects on the behaviors of different kinds of households are becoming increasingly evident.

PYMNTS Intelligence’s new study “The Last Transaction: Family Spending Habits Reveal Merchant Opportunities in Retail and Travel” sheds light on how inflation is reshaping the spending habits of families, especially those with children at home. This report, based on a May survey of more than 2,700 consumers, highlights three significant trends: the disparity in spending between households with and without children, the ways different kinds of households prioritize different retail purchases and the economic opportunity presented by empty nesters.

Disparity in Spending: Parents Versus Non-Parents

The data shows a stark contrast in spending behaviors between households with children and those without. Married parents with children at home typically have higher household incomes, with 62% reporting annual incomes of $100,000 or more. Still, their spending on both retail and travel has decreased significantly.

Married parents were found to be 36% more likely to complete a retail purchase in the last 30 days than single consumers without children at home. However, the average amount they spent on retail dropped from $147 in 2022 to $114 in 2024. This trend suggests that while parents still engage in retail activities, they are becoming more conscious of their budgets.

In terms of travel, married parents with children at home were 77% more likely to make a travel purchase recently than married couples without children. However, despite their higher likelihood of purchasing travel services, their spending per trip has decreased. The average amount consumers spent on travel services in the 30 days prior to being surveyed was down from $389 in 2022 to $326.

Product Preferences Across Different Household Types

Different household compositions exhibit distinct spending habits on various products. Married parents with children at home tend to allocate more of their budget to essential items and child-related expenses. For instance, 32% of these households recently purchased clothing and accessories, perhaps driven by the need to constantly update their children’s wardrobes.

They also show a higher propensity to buy consumer electronics and sporting goods, with 13% and 11% of their most recent transactions in these categories, respectively. These purchases may be influenced by the demands of modern family life, such as school supplies, gadgets for learning and recreational equipment.

In contrast, households without children prioritize different expenditures. They are likelier to spend on household goods, building materials and pet supplies.

Empty Nesters Fly the Coop

When it comes to travel, older consumers who are not responsible for paying any children’s way lead the pack in spending. Married baby boomers and seniors without children at home are spending an average of $754 on travel services, significantly more than any other group. This trend indicates that older, childless households are less affected by economic uncertainties and maintain higher travel budgets.

These households may benefit from stable, fixed incomes such as pensions and retirement savings, which are less vulnerable to economic fluctuations. Moreover, with fewer financial obligations like childcare or education costs, they may have more disposable income to allocate toward travel. This increased spending power could allow them to indulge in more frequent or luxurious travel experiences, highlighting a stark contrast in financial resilience and discretionary spending between them and younger families with children.