NAB consumer sentiment index shows cost-of-living spending trends

One of Australia’s largest banks has crunched the numbers to show Aussies are pulling back on streamers and ‘micro treats’ to maintain spending on the two key things that are most important to them.

Australians scuffling through a rolling cost-of-living crisis are getting “emotional” in their spending decisions, ditching streamers like Netflix and micro-treats like coffee and snacks to maintain spending on the things they love most in life: pets and their kids.

The cutbacks, revealed in NAB’s latest consumer sentiment survey, are freeing up about $320 a month on average.

Some 57 per cent of the 2000 people surveyed have cut back on eating out and some 49 per cent have pulled back on coffee and snacks and streaming services.

Just 14 per cent, by contrast, have reduced spend on children’s activities like sport and dance classes.

“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,” NAB personal everyday banking executive Paul Riley said.

Australians are prioritising spending on pets and their children over discretionary treats like streaming services, according to a new survey from NAB. Picture: NewsWire / Nicholas Eagar

“For many it’s about prioritising spend in the areas that mean the most, and unsurprisingly children and pets are high on the list.

“There is an emotional element to budgeting and this research shows where people’s priorities are.

“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.”

The survey covers the April, May and June months.

The move away from streamers comes as the big entertainment giants increase their monthly prices.

In July 2023, Spotify upped its individual streaming option from $11.99 to $12.99, with the price now sitting at $13.99.

In April, the audio media behemoth raised the price of a family subscription from $20.99 a month but to $23.99 a month.

In May, Netflix ramped up the price of its premium subscription service, which includes ad-free viewing in ultra HD, from $22.99 a month to $25.99.

The spending discipline is saving Australians an average of $320 a month. Picture: NewsWire/Sarah Matray

Its standard service with ads is priced at $7.99 a month, rising from $6.99.

NAB also suggests a growing trend towards savings as consumers grow more cautious.

In the past year, the average balance of NAB’s high interest savings account grew by 25 per cent, the bank said on Tuesday.

“Despite the pressure from the higher cost of living, it’s interesting to see Australians are still determined to prioritise their savings,” Mr Riley said.

“More than half of Australians are switching to less expensive products, doing their research before making a purchase or looking for a deal.

“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.”

Originally published as NAB consumer sentiment index shows cost-of-living spending trends