Older Aussies more frugal than Gen Y - except when it comes to gambling
A recent study by Mozo has shown that while on the whole, Aussies are racking up a staggering $144 billion annual bill on life's little luxuries, the older generation is considerably more frugal than their kids and grandkids - except when it comes to a roll of the lucky dice.
The study looked at some of the biggest lifestyle expenses Aussies were shelling out for, including clothes and shoes, eating out, cigarettes, gambling and paid TV services like Netflix, and found that the average Aussie adult was spending over $7,800 a year.
Aside from simply showing how much money Aussies were frittering away on entertainment and pampering, the results showed a clear divide in generational spending patterns.
“Our research shows that overall, older Aussies are the most frugal while the younger generations are the the most likely to fritter their cash away on a host of expenses including buying lunch out, bottled water and clothes and shoes,” said Mozo Director, Kirsty Lamont.
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Three quarters of over 65s spent less than $100 a month on clothes, while half of under 35s spent more than that. Two thirds of the older generation were willing to part with their hard earned cash for a takeaway dinner, compared to 90% of Gen X and Y.
Perhaps unsurprisingly, 25-44 year olds were also far more likely to spend money on TV streaming services and were 30% more likely than their grandparents generation to spend on gadgets like gaming consoles or smartphones.
But there was one category in which the older generation were the big spenders: gambling, including things like lottery tickets, poker machines, scratchies and sports betting. The overall spend was about $7 billion a year, and three in five over 55s were footing the bill.
Although the results weren’t exactly something for Aussie spenders to brag about, Lamont was positive about the potential for household savings identified by the study.
“Ultimately this research is great news for Aussies struggling to save,” she said, “with the new financial year around the corner, now is a great time to resolve to cut down on lifestyle expenses, with potential savings of up to $7,800 over the year.”
Check out Mozo’s vice calculator to see how much you could save by giving up one of your guilty pleasures, like coffee, cigarettes or takeaway food. And if you’re planning to break the habit, you’ll need somewhere to stash all those savings, so head over to our comparison tables to find a great high interest savings account.