How do members of the millionaires club spend their money? The answers may surprise you.
Members of the millionaires club are more likely to drop $100,000 on charity than on jewelry, boats or any other discretionary item, according to the latest Millionaire Corner research on U.S. households with a net worth exceeding $25 million.
At the end of 2011, there were roughly 107,000 households with a net worth of more than $25 million, according to our research, and more than one-in-five of these affluent households donated $100,000 or more to charitable organizations over last 12 months.
Additionally, 10 percent of $25 million plus households gave $50,000 up to $100,000, and 16 percent gave $25,000 up to $50,000, according to our research, which illustrates the giving nature of members of the millionaires club. It’s true that $25 million plus investors are also likely to purchase luxury goods and spend on travel and entertainment, but no category attracts the millionaire dollar like charitable giving.
What’s the second-biggest spending category for members of the millionaires club? After charitable contributions, $25 million plus households are most likely to spend large sums on vacations and leisure travel. Thirteen percent of $25 million plus households spent $100,000 or more on travel over the last 12 months, while 10 percent spent $50,000 up to $100,000 and 22 percent spent $25,000 up to $50,000.
The sums are sizable, but members of the millionaires club appear most interested in family vacations, as opposed to exotic travel. Three-fourths of $25 million plus members indicate an interest in travel to visit friends and relatives, while 65 percent cite educational travel, 59 percent, exotic travel such as safaris, and 57 percent, cruises.
Less likely to attract members of the millionaires club are luxury items and entertainment. More than half of $25 million plus households spend less than $10,000 a year on jewelry, clothing, entertainment, collectibles, club memberships, political contributions and gambling. Our research indicates that members of the millionaires club appear least inclined to spend money on a yacht