New NAB research reveals 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 to protect those things they really value:
Least willing to cut back on:
- Children’s private school fees (10%)
- Children’s activities: sport, hobbies (12%)
- Spending on pets (18%)
- Outsourced home services/cleaning (21%)
- Insurances: health, home, car (21%)
Most willing to cut back on:
- Eating out at restaurants/take away (55%)
- Micro treats: coffees or lunches out (50%)
- Trips to the movies or entertainment (49%)
- Car trips to save on petrol (45%)
- Holidays (43%)
NAB Head of Everyday Banking Claire Righetti said the rising cost of living is prompting Australians to cut back spending in some areas they can live without to prioritise their spending on 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.” Ms 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%).
Ms Righetti noted NAB customers were resilient and broadly in good shape but, as living costs continue to rise, some customers may look to get closer to their money to avoid financial stress.
“We’ve continued to add features into our mobile app to help customers track their weekly spending habits, helping them be better informed about where they spend their money,” Ms Righetti said.
