- 18–29-year-olds are more likely to ‘splurge’ on big experiences and cut back on items they value less
- Gen Z are saving up to $4,800 a year by cutting back on restaurants, micro treats, petrol and entertainment
- Young Aussies had the lowest increase in credit card transactions over the past 12 months compared to their older counterparts
In a bid to reclaim lost time from the pandemic, young Australians are making cutbacks that add up to $4,800 a year, allowing them to splurge on premium experiences like concert tickets and destination holidays.
NAB’s Consumer Sentiment Report reveals 18 – 29-year-olds are prioritising bigger ‘once in a lifetime’ experiences and cutting back on things they care less about.
On average, 18-29 year olds are currently saving $403 a month by cutting back on restaurants ($149), buying micro treats ($78), entertainment ($79) and car journeys to save on petrol ($97), representing a saving of over $4,800 a year.
NAB Personal Banking Executive, Kylie Young, said by adjusting daily spending, younger Australians are using their savings to make every moment count.
“This group seem to be looking to make up for things they missed out on during the pandemic. Call it revenge spending or investing in ‘once in a lifetime’ moments, but the fact is they are taking advantage of every opportunity,” said Ms Young.
“We’re seeing Gen Z manage the cost of living in their own way. Whether it’s a Taylor Swift or Robbie Williams concert or a Matildas match, younger Aussies are showing they are prepared to cut back on eating out, food delivery, or micro treats to make ‘life moments’ happen.”
Furthermore, more than one in two (54%) 18-29 year olds surveyed reported cutting back on food delivery services, saving them on average $92 per month, and if continued, represents an additional $1,100 a year in savings.
“While many consumers have adjusted to the rising cost of living, we know this is not the case for everyone. For anyone who needs financial assistance, please contact your bank early. We find when people reach out to us early, more than 90% of customers are back on their feet within 90 days.”
- Data taken from NAB Consumer Sentiment Q3 survey of around 2,000 Australians.