Biting your nails, leaving dirty dishes in the sink, or doomscrolling before bed. Everyone has one or two bad habits. And sometimes, those habits can creep into other aspects of our lives, including the way we spend money.
With news feeds constantly filled with stories about cost-of-living pressures, Australians are becoming more aware than ever of their finances, budgeting and spending habits. Despite this, many continue to spend money on the very things they know are stretching their budgets.
To better understand where household spending is adding up and why some expenses are so difficult to cut back on, we commissioned a national survey* of more than 1,000 Australians.
From convenience spending to discretionary purchases, Australians' attitudes towards money reveal some interesting contradictions.
Where Aussies are finding themselves financially
Despite ongoing cost-of-living pressures, almost two-thirds of Australians surveyed (63%) describe themselves as financially secure, while 27% say they are financially stable and 10% consider themselves financially challenged.
However, feeling financially secure doesn't necessarily mean spending habits are always disciplined.
Just over one in three Australians surveyed (35%) describe themselves as very disciplined with money. Meanwhile, 31% say they are generally good with money but have some bad spending habits, while 19% admit they occasionally waste money.
How do spending attitudes differ across generations? Baby Boomers appear the most disciplined, with more than half of those surveyed (51%) describing themselves as very disciplined with money. By comparison, Gen Z respondents were least likely to say that they were very disciplined with money (24%), instead most likely to describe themselves as being generally good with money but having some bad spending habits (35%), while Millennials were the most likely generation to admit they regularly spend money on things they didn't need (15% vs 9% average).
What is costing Aussies the most?
When asked about their biggest annual discretionary expenses, dining out and takeaway topped the list, with four in ten Australians surveyed (40%) citing it as one of their largest annual costs.
Other common expenses include:
- Travel and holidays – 37%
- Streaming services (e.g. Netflix) - 28%
- Coffee or drinks purchased out – 22%
- Pet-related expenses – 15%
Despite these costs adding up over time, there are some expenses Australians are particularly reluctant to give up.
The survey found streaming services are the expense those Australians are most unwilling to cut back on, with more than one-third (34%) saying they would keep this expense even when trying to save money.
Age also appears to influence which expenses Aussies consider non-negotiable. Gen X are most likely to hold onto their streaming services (38%), Baby Boomers are most reluctant to give up their travel and holidays (38%), meanwhile Gen Z overwhelmingly prefer to keep their music streaming services (33%).
The bad habits Aussies can't shake
Most Australians have a good idea of the spending habits they believe are costing them money. More than half (51%) of the respondents identify impulse online shopping as one of their biggest money-wasting habits.
Other spending habits those Australians say they waste money on include:
- Ordering takeaway frequently – 49%
- Paying for subscription services they rarely use – 48%
- Buying lunch instead of preparing meals – 44%
- Forgetting to cancel free trials – 41%
- Regularly buying coffee or drinks – 41%
Despite recognising these behaviours, many Australians continue to spend on them.
Australians surveyed estimate they waste an average of $165 per month on spending habits they consider unnecessary. Men report higher levels of estimated monthly waste, averaging approximately $184 per month compared with $148 for women.
Around half of Australians (50%) believe they waste at least $100 per month, while one in four (25%) estimate they waste $200 or more.
Surprisingly (or perhaps alarmingly) just 7% of Aussies surveyed believe they waste no money in a typical month.
Too busy to budget?
The research suggests convenience may influence spending decisions just as much as budgeting intentions.
Almost six in ten Australians surveyed (59%) say they spend money on convenience purchases at least monthly because they don't have enough time.
Food delivery is the most common time-saving purchase (34%), followed by grocery delivery (30%) and pre-made meals (24%).
Interestingly, some of the spending habits Australians most commonly identify as wasteful are also among the convenience purchases they continue to make. While many recognise the cost of takeaway, food delivery and pre-made meals, the time-saving benefits appear to be what keeps these expenses firmly in household budgets.
This doesn't necessarily point to careless spending. Rather, it highlights how convenience services can help reduce the time spent cooking, shopping and running errands, making them difficult to give up even during periods of financial pressure.
For Australians looking to strengthen their financial fitness, however, small changes can still make a meaningful difference.
To reduce unnecessary spending:
- 48% shop with a list
- 40% make coffee at home
- 36% prepare lunches and dinners in advance
- 27% avoid impulse purchases by waiting a set period of time before buying
There are also tools, such as Youi's Financial Fitness Calculator, that can help identify recurring costs and highlight opportunities to make small but meaningful changes.
Bad habits aside...
We've all been told at one point or another that we should break a bad habit. But when it comes to spending, the picture may not always be so simple.
Most Australians can identify where their spending habits are costing them money and many have already adopted strategies to reduce unnecessary spending. Others continue to prioritise convenience, even when they recognise the trade-off.
The findings suggest that for many Australians, spending decisions aren't always driven by a lack of awareness. Instead, convenience and time-saving benefits often play an important role in shaping everyday spending choices.
And for many Australians, saving time can feel almost as valuable as saving money.
How do your spending habits compare to Australia? Explore the data for yourself.
*Disclaimer
Data for the Bad Spending Habits study was sourced from a survey conducted by Ideally between the 16th - 17th of September, involving 1,071 Australians aged 18 years old and above, from all states and territories within Australia. Some percentages have been rounded to the nearest whole number. As a result, the sum of the individual numbers may not always add up to 100%. Also, some questions allowed respondents to select multiple answers, with the data reflecting the percentage of respondents who selected each response. Survey results have not been independently verified by Youi and may not be representative of the general population. Youi makes no representation or warranty of any kind of the accuracy, adequacy, reliability, or completeness of the data and accepts no liability for any loss or damage of any kind suffered as a result of the use of or reliance on the data. Individual experiences may vary.
