Young Aussies spending $910 more than planned when moving out of home
Friday 28 February 2020
Moving out of home is an exciting time, but that newfound freedom comes with a pretty big price tag. Whether you’re moving in with others or renting a place by yourself, there’s a good chance you've underestimated all the costs that are waiting for you just around the corner.
In fact, a recent study by eBay found that young Australians are spending $910 more than planned when moving out of home, and more than half report being surprised by just how high the cost of living is.
“Once you factor in furniture and homewares, as well as the cost of cleaning products, toiletries and keeping your pantry stocked, you can understand why 50% of young people are still living with their parents,” said eBay Australia’s Sophie Onikul.
So how are Aussies who’ve just left the nest getting by? Turns out they’re a pretty crafty bunch. 35% resort to taking household items from work, with toilet paper, tea and coffee, and bin bags among the most popular items to swipe.
And when it comes to stocking pantries, young Australians are still pretty pretty dependent on their parents’ goodwill. A whopping 75% of respondents aged 18-24 admitted to taking items from family members.
While those kinds of resourcefulness skew a bit on the desperate side, they underscore just how strapped for cash many young Australians are. Below, we’ve compiled a few tips to make sure that your first year out of home doesn’t wind up being a financial nightmare.
Keep track of expenses
Monitoring your spending is pretty important, especially now that so much of your income and savings will be eaten up by rent. By tracking where your money goes each month, you’ll be able to identify and eliminate any unnecessary expenses — and put money back in your pocket.
Embrace frugal living
While it looks like plenty of Aussies are already going to creative lengths to rein in their spending, there are ways to be frugal beyond petty theft and parental charity. Think about switching to a cheaper phone or internet plan, getting rid of any idle subscriptions, and taking public transport instead of catching Ubers.
Use credit cards and buy now, pay later services wisely
Both credit cards and buy now, pay later services can be useful tools if used responsibly. But they become problematic if you treat them as a license to splurge. To avoid finding yourself in over your head in debt, make sure you pay off your balance in full each month and avoid buying things you know you can’t afford.
Automate your savings
If you’re finding it hard to forge good savings habits, try automating the process entirely. That involves setting up an automatic transferral of funds to take place every time you get paid. Better yet, open an account with another bank and have that amount deposited there.
Setting up your finances across two banks is a good way to deter you from dipping into your savings whenever you get tempted. And if you’re not sure where to start when it comes to savings accounts, browse our savings account comparison page for an idea.