How are cost of living pressures impacting spending habits?

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on June 13, 2022 Fact Checked
How are cost of living pressures impacting spending habits?

New NAB research has revealed Australians are making changes to spending behaviours, cutting back on non-essentials in order to save money.

Data from NAB has revealed one in four Australians have recently swapped out non-essentials including food delivery and entertainment services for a little more cash in their back pocket. 

With cost of living pressures felt everywhere from the petrol pump to supermarket shelves - looking at you lettuce prices - the survey of 2,000 people revealed one in two Aussies are switching to cheaper alternatives. 

Further in terms of non-essentials, the data revealed:

  • About 28% cut back or cancelled subscriptions such as newspapers, magazines or apps.
  • About 25% reduced or stopped streaming services or cut back on gym memberships.
  • About 22% cancelled or cut back on outsourcing home services like lawn mowing and house cleaning.
  • About 20% cancelled or cut back on activities such as sport, dancing, or hobbies.

Everyday spending behaviours saw a more significant reduction, with 44% of Australians cutting back on 'micro-treats' such as coffees, snacks, and lunch.

As fuel prices surpass the $2 per litre mark, some 34% of Australians delayed, cancelled or made modest travel plans. 

Cutting costs is also evident across major household purchases with some 30% of Australians delaying or cancelling purchasing such items.

NAB Group Executive Personal Banking Rachel Slade said the survey showed Australians are being creative and flexible when it comes to managing their money.

"We can see the impact of inflation starting to show with prices moving up and we know many Australian households are already feeling cost-of-living pressures," Ms Slade said.

"People are finding ways to make short term changes and get on top of their money."

Factoring in the longer-term, the RBA's June decision brought some much needed relief for savers with a number of banks passing on savings rates and term deposit increases

The likes of Macquarie Bank went one step further, breaking the shackles of record-low everyday transaction account interest rates, increasing their transaction account product to 1.50% p.a


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            Image by Marques Kaspbrak via Unsplash

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            Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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