Qld defies cost of living crisis to spend up on dining out, cosmetic surgery

As the cost of living soars, Australians haven’t slowed down their spending on non-essential items. See which age groups are buying what.

Grocery prices continue to skyrocket across the country, but young people are still finding spare cash to wine, dine and improve their looks.

Latest quarterly spending data from finance app Frollo revealed monthly medical expenditure had climbed a whopping 40 per cent, while grocery spending increased by a further 24 per cent to $815 per month.

Australians are now spending 20-30 per cent more at the supermarket compared to this time last year.

But despite the rising cost of living, they are choosing to spend more at restaurants, cafes, pubs and takeaway, forking out up to $680 per month.

But it’s Millennials and Generation X who have been splashing the most cash on hospitality fun, with Gen X happy to spend over $800 per month.

Millennials have also reported a substantial increase on medical spending, up by 53 per cent.

Head of product at Frollo Kris Davant said young people were likely taking advantage of elective and cosmetic surgery availability post-Covid-19.

Increases in monthly spending by generation. Picture: Frollo

“The medical category involves going into hospitals and surgery and chemists, and I think we saw a trend of people putting off surgery in the midst of lockdowns, and now they are being more health-conscious,” he said.

“With Millennial and Gen Z spike, it could be cosmetic.”

Queenslanders were quite thrifty during the last quarter compared with other jurisdictions, with the majority of spending directed towards fuel.

Fuel spending increased by 51 per cent up from $101 to $154 per month – an interesting expenditure hike during the quarter when the fuel excise discount was in place.

Sunshine State residents were also conservative when it came to dining out this past quarter, recording only a 19 per cent increase compared with New South Wales’ frivolous 141 per cent hike.

Mr Davant said the Queensland’s tightened purse strings could be explained by its pandemic experience.

“Maybe with the (pandemic) swing; Queensland didn’t get hit as hard with lockdowns as NSW and Victoria,” he said.

“Or maybe they just manage money better.

“But looking at the overall mental shift of last year to today, people do seem to want to enjoy themselves and enjoy freedom as well.”

Increases in monthly spending by state. Picture: Frollo

Utility spending also increased across the country by 18 per cent from $170 to $200 ahead of further energy price hikes expected to be felt as early as Christmas.

Mr Davan said the utilities increase was “interesting” considering most Australians were in lockdown this time last year, with the data best “put down to price increases.”

With further interest rate and power price hikes looming, Mr Davant said it was a good time for Queenslanders' to refresh their budget plans.

“Across the board, fuel and groceries hit everyone hard,” he said.

“Quarter to quarter yet again groceries are increasing. If you add that to mortgage stress as well higher interest rates we need to eat … I think we’re also seeing a massive interest rate hike soon which will tighten belts a little.

“Our advice is stick to some sort of plan or budget but still enjoy the things you enjoy, for instance if you like buying high quality meats et cetera.

“Obviously we would love people to use the Frollo app but plan anyway you can, whether it’s on the back of an envelope, on a spreadsheet. And still try to enjoy yourself, we all work hard to earn our money.”

National increases in monthly spending. Picture: Frollo