Households in the top 10% income bracket drop nearly as much money on discretionary items as the bottom 70% combined, according to the Bank of America Institute. In 2023, the top 10% of pretax earners accounted for 36.2% of average annual expenditures on discretionary goods and services, while the bottom 10% accounted for just 2.1%. This K-shaped spending pattern persists in 2026, with affluent consumers driving demand for nice-to-have items and supporting overall spending despite a tough job market and rising prices. Bank of America economists warn that as long as wealthy households keep spending, inflation could remain stubbornly sticky, though their spending is vulnerable to a sustained equity drawdown of 20% or more.