Boomers spending big on renovations and eating out as cost of living soars

While the cost of living crisis has forced many Aussie households to refocus their spending, one generation continues to splash out on home renos and dining out.

Boomers are continuing to splash huge amounts of cash on home renovations and dining out amid the cost of living crisis, new data shows.

Personal finance app Frollo surveyed 35,000 Australians and found the Boomer generation had more than doubled their monthly spending on home and maintenance renovations in 2022, up 164 per cent compared to 2021.

While all Australians reported a significant increase on money spent on groceries, up 18 per cent this year, Boomers appeared to be least affected by the cost of living crisis, spending an average of $2277 per month at restaurants, pubs, cafes and takeaway places.

Boomers have been spending exorbitant amounts of money on home renovations compared to Millennials and Gen X, while spending less on fuel and groceries. Picture: Frollo

Frollo Chief Consumer Officer Simon Docherty said Boomers were likely more conservative with the savings during Covid, increasing their ability to spend “post-pandemic.

“I think they probably were more conservative with their money and had more savings to draw on that they accumulate during Covid,” Mr Docherty said.

“Which means they had more to spend on renovations in particular, that was a surprise increase spend that we found.”

Millennials were most conservative with their money when it came to dining out, spending just under $2000 per month, while Gen X spent a whopping $2440 per month however, Boomers still saw the largest jump in hospitality spending between 2021 and 2022, up 35 per cent.

The survey also found Gen X was most likely to be affected by high fuel prices, spending 34 per cent more than Boomers and Millennials in 2022 at an average spend of $155 each month.

Boomers also saw the largest increase in monthly hospitality spending between 2021-22, up 35 per cent. Picture: Frollo

Grocery expenditure is hitting Aussie households the hardest in 2022, with the average family spending $663 per month, far more than the next highest spend ($318) on insurance.

Home and maintenance renovations were third on the list ($286), followed by health care ($232) and fuel ($121).

Mr Docherty said the high increase in grocery spend was of concern, as Aussies battle to balance their budget alongside high interest and a desire to get back to normal life after lengthy pandemic lockdowns and restrictions.

Australians are digging deep into their pockets each month for groceries, with monthly spending far outweighing petrol and medical expenses. Picture: Frollo

He encouraged businesses and individuals to be pragmatic and evaluate their financial needs and spending ahead of the Christmas period.

“What we’re seeing is competing financial spending, an increase on what’s spent on groceries as well as people desire to get out more,” he said.

“I think there’s competing behaviours there, that’s why were saying it’s a great time to understand your finances better.

“As people are getting back out there, they’re doing more things that they did previously (before Covid) but with the rising cost of living, it’s time to be pragmatic.”