Australians are making some considered choices when it comes to prioritising their spending, a new report shows.
Research published by NAB this week shows that despite a rising cost of living, Australians are determined to prioritise spending on their children and pets and are making ‘considered choices’ to meet the cost of school fees, children’s sports and insurance.
NAB’s economic research demonstrates the trade-offs Australians are willing to make, in order to protect those things they really value.
Some of the things we are least willing to cut back on include insurances – health, home, car (21%), children’s education and activities, sport, or hobbies (12%) and spending money on our pets (18%).
On the other side, respondents said they would be most willing to cut back on eating out at restaurants/take away (55%), treats such as coffees or lunches out (50%) and going to the movies or entertainment (49%).
Car trips have lost their shine, with almost half the respondents saying they would prefer to save on petrol (45%), while holidays (43%) are also on the outer.
NAB Head of Everyday Banking Claire Righetti said the rising cost of living is prompting Australians to cut back spending in some areas to prioritise the things they value most.
“Despite feeling the pinch, people are making cutbacks on things like coffee and cinema outings, so they can still dedicate funds to their kids and pets”, Righetti said.
“Australians are becoming more ‘considered consumers’ and saving an average of $286 each month through small thoughtful cutbacks.
“It means they can still spend on those things that really matter – for some people it’s the family pet and for others it’s getting extra help around the home.”
Consumers prioritising spending on their pets is in line with findings from NAB’s financial wellbeing survey, that revealed pets have the biggest positive impact on people’s wellbeing at 58%, ahead of family and personal relationships (49%), and the home we live in (46%).
Righetti noted that many Australians are resilient and broadly in good shape but advised that, as living costs continue to rise, tracking household spending can help avoid financial stress.
“If customers are feeling concerned about their financial situation, the best thing they can do is to get in touch with their bank”, she concluded.
