Wealth composition impacts consumption inequality, financial assets drive spending differences.
The study looked at how rich and poor people spend their money in France. They found that rich people tend to spend less of their wealth on things like buying stuff or paying bills compared to poor people. Rich people are more likely to spend money from their investments, while poor people spend more from their homes. When the stock market goes up, rich people tend to spend more, making the gap between rich and poor even bigger. But overall, sudden changes in wealth don't have a big impact on how much people spend.