New NAB research reveals that despite a rising cost of living, Australians are determined to prioritise spending on their children and pets and are making ‘considered choices’ to meet the cost of school fees, children’s sports and insurance.
NAB’s economic research demonstrates the trade-offs Australians are willing to make to protect those things they really value.
Least willing to cut back on:
Most willing to cut back on:
NAB Head of Everyday Banking Claire Righetti said the rising cost of living is prompting Australians to cut back spending in some areas they can live without to prioritise their spending on things they value most.
“Despite feeling the pinch, people are making cutbacks on things like coffee and cinema outings, so they can still dedicate funds to their kids and pets.” Ms Righetti said.
“Australians are becoming more ‘considered consumers’ and saving an average of $286 each month through small thoughtful cutbacks – it means they can still spend on those things that really matter – for some people it’s the family pet and for others it’s getting extra help around the home.”
Consumers prioritising spending on their pets is in line with findings from NAB’s financial wellbeing survey, that revealed pets have the biggest positive impact on people’s wellbeing at 58%, ahead of family and personal relationships (49%), and the home we live in (46%).
Ms Righetti noted NAB customers were resilient and broadly in good shape but, as living costs continue to rise, some customers may look to get closer to their money to avoid financial stress.
“We’ve continued to add features into our mobile app to help customers track their weekly spending habits, helping them be better informed about where they spend their money,” Ms Righetti said.
“If customers are feeling concerned about their financial situation, the best thing they can do is to get in touch with their bank.
“More than 90% of customers who speak to our NAB Assist team early are back on their feet financially within 90 days.”
Data was collected from the NAB Consumer Sentiment survey Q2 2023, which included around 2,000 respondents.