Cutting down on subscription services can save Aussies hundreds annually
More than a third of Australians are adjusting their spending habits by trimming down on subscription services, resulting in an average monthly saving of $56 or over $670 annually, according to new data from NAB.
As the pressure of living costs persists, NAB found:
- 37% of Australians have scaled back on streaming services in the past three months, while 33% have tightened their expenditure on other subscriptions such as magazines, apps, and various goods
- Comparing figures to the previous year, there's been a 12% increase in Australians reducing streaming subscriptions and a 10% rise in cutting back on other subscriptions
- Gen Z individuals are leading in subscription cutbacks, with 45% trimming streaming services and 42% paring down other subscriptions
Larna Manson, NAB Retail Customer Executive, noted the trend of Australians adopting smarter spending practices by reassessing their subscriptions to cope with rising living expenses.
“Australians might be surprised to find out just how many subscriptions they’ve signed up to without even realising,” Manson said. “Decluttering expert Marie Kondo put it best when she asked ‘does it spark joy’ – you could save hundreds of dollars each year by unsubscribing from old, unused or expensive products and services.
“You might have got to the end of a series or eBook, don’t need extra cloud storage for photos, changed up your meal plans or cooking or don’t need such regular deliveries of wine, toiletries or clothes and apparel. Even small changes like opening a shared family account to split costs, looking for more budget friendly options without the bells and whistles, or downgrading your plan can make a big difference.”
Dr. Louise Grimmer, senior lecturer in retail marketing at the University of Tasmania shed light on the challenges of cancelling subscriptions, often encountering what she termed "sticky subscriptions."
“While in most cases signing up is as easy as just a few clicks … unsubscribing can often be much harder and it may be difficult to find the option to cancel or pause your service or delivery,” Grimmer said. “You might have to call up during business hours or live chat to cancel, those options might not be available on your mobile, they might be buried deep in account settings, or you might be tempted with offers to stay.”
To assist consumers in managing subscriptions effectively, Manson and Grimmer provided practical tips:
- Conduct a comprehensive stocktake of subscriptions, including payment details and frequency.
- Explore options such as pausing, downgrading, or switching plans to save money.
- Navigate cancellation processes, which may involve calling or live chatting with customer support.
- Consider bundling subscriptions for easier management.
- Resist retention offers and set reminders to reassess subscriptions before renewal dates.
By implementing these strategies, consumers can gain better control over their subscriptions and potentially save significant amounts of money annually.
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