Australians continue to cut back on spending across the board, but are working hard to minimise the impact on their children and pets.
The latest NAB Consumer Sentiment survey found 14 percent of people had cut back on spending on children’s activities, such as sport and dance classes, while also reducing by 20 percent what they outlayed on their pets.
NAB Personal Everyday Banking Executive Paul Riley said cuts were larger in other areas with more than half of people cutting back on eating out (57 percent), and almost half reducing spend on micro treats like coffee and snacks (49 percent) and entertainment (49 percent).
“For many it’s about prioritising spend in the areas that mean the most, and unsurprisingly children and pets are high on the list,” Mr Riley said.
“There is an emotional element to budgeting and this research shows where people’s priorities are.”
He said Australians were finding smarter ways to save, with small cutbacks freeing up on average $320 a month in their budgets to spend on the things that matter to them.
“When the cost-of-living crunch started, we saw early signs of people making cutbacks here and there, what we’re seeing now is that pattern of behaviour has become entrenched in our everyday lives,” Mr Riley said.
“You can see that cutting back on daily treats or bringing your lunch to work is clearly worth it for those who want to make brunch with friends on the weekend.
“And while streaming services are great, we’re seeing parents pause those to provide their kids with more live experiences.”
