Australians are sacrificing day-to-day purchases, like a second coffee, to free up about $300 in their budgets to keep spending on family members and furry friends, a new bank report has revealed.
As elevated cost-of-living pressures continue to crunch household budgets, fresh National Australia Bank data noted people were more likely to dine out less and cut streaming services, in favour of buying pet food and paying for children’s dance lessons.
NAB personal everyday banking executive Paul Riley said Australians were finding smarter ways to save, with small cutbacks freeing up $320 on average a month in their budgets to spend on the things that matter to them.
“While concern for cost-of-living continues to be high for Australians, they’re generally actually managing OK . . . because they’re making changes to the way they’re going about spending,” he said.
“The top three things that they are cutting back on in the last quarter were eating out, buying micro-treats like coffees, and entertainment and subscriptions.
“What we’re also seeing is that Australians are less likely to cut spending when it comes to those things that they love the most, specifically around our kids and pets.”
NAB also found six in 10 people were using the extra funds for everyday living expenses, while 2 in 10 use it to pay down mortgages.
While some Australians were practising thoughtful spending, Mr Riley said others were bolstering their savings.
In the past year, the average balance of NAB’s high interest savings account grew by 25 per cent.
“It’s definitely surprising to see this growth in savings balances, especially when prices remain quite high, but it’s a welcome sign that Australians are more deeply engaged with their finances now than they have been for a long time,” Mr Riley said.