The purpose of this study is to apply ratio analysis, which indicates the rate of income to total expenditure, to examine wage-earners' overspending in Korea. We use the Family Income and Expenditure Survey produced by National Statistical Office Republic of Korea and total sample size is 40,691 including households complete income reported. Through the t-test, among 17 expenditure categories, overspenders is likely to spend more on housing, apparel, medical, education, and leisure expenditures more than non-overspenders significantly. Interestingly, overspenders have more income, but less financial assets than non-overspenders. To analyze the effect of socio-demographic variables on overspending, ordinary least square is utilized. The results shows that the more educated, larger family size, and older consumer tend to overspend. The results of study are leaded into two aspects. First, overspending can be solved by consumer education with efficient financial management practice. Second, overspending may be not solved unless policies in various ways enhance the overall quality of living to lessen each household's budget constraints.
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