Follow us on LinkedIn, Instagram, Facebook, YouTube and Twitter
Sydney, Sept 14: New data from fintech Frollo shows that Australian households are spending significantly more on groceries, as well as petrol and insurance within the first nine months of the year.
A comparison of 35,000 users of the Frollo personal finance app between May – July this year and the same period in 2021 shows monthly spending on groceries is up 18 per cent, from $592 to $663.
This news comes as little surprise after inflation reached 6.1 per cent in the June quarter, according to the ABS, the fastest annual pace since 2001.
Despite the previous government having cut the fuel excise, average fuel spend in May and June also was still significantly higher than the corresponding period in 2021.
The average household fuel spend increased 19 per cent in 2022, from $102 to $121.
Other areas where Aussie households are spending more than last year are healthcare and medical expenses (up 18 per cent, from $197 to $232) and insurance which up 13 per cent from $282 to 318.
Boomers are renovating and eating out in 2022
Although each age bracket is spending more in 2022, there are some clear differences between generations when it comes to where the money is going.
Baby boomers are the primary driving force behind the increased ‘home renovation and maintenance’ spend in 2022, more than doubling their monthly spend in this category (+164 per cent, from $244 to $646). Although boomers also saw an increase in groceries (+1.7 per cent) and fuel spending (1.9 per cent), these increases were small compared to those for other generations.
Gen X seems to be most impacted by the fuel price increases, spending 34 per cent more on fuel per month in 2022 than in 2021 (from $115 to $155).
With lockdowns in various parts of the country between May and July 2021, Gen X could also be more inclined to take the car to work again in 2022.
Another category the spend data shows a clear difference between 2021 and 2022 is hospitality. Monthly spending on restaurants, pubs, cafes and takeaway is up 22 per cent, from $1,675 to $2,048. Although each generation spends more in 2022, Boomer hospitality spend has increased the most (+35 per cent) and Millennial hospitality spend increased the least (+11 per cent).
The importance of money management
With inflation and interest rates increasing, many Australians are facing mortgage stress or even financial hardship. The average Australian has at least two different banking relationships and five or more different financial products, so it can be hard to stay on top of finances.
Money management apps like Frollo offer users an overview of all their finances in one central place, smart insights to understand their financial situation and the tools to improve their finances.
Banks are starting to catch up. Beyond Bank recently launched a financial wellbeing app that shows customers all of their finances, including accounts with other financial institutions. CommBank, Bank of Queensland and Virgin Money Australia have started integrating spend graphs, insights and budgeting tools in their banking app to help customers better manage their money.
Editor’s Note: You can now download our app on the Google Play Store or the Apple Store, or write your next best-selling novel with our sister app Toolis, available on the Apple Store and Google Play Store or purchase something from us at www.tapiroo.com, yayaezzy.com or at lazybumskincare.com.au.
We are happy to note that we are also now on Amazon Australia. Purchase our products as a show of support and they are Yaya, Ezzy, Tante June and Xeno backpacks or our beauty products such as LazyBum Skincare Facial Cleanser, LazyBum Skincare Toner and Moisturiser and Blitz Hair Oil Spray.
Also, check out our rate card and media kit here if you would like to advertise with us on this website. Thank you!
Like What You Read?
Howdy! Thanks for dropping by and reading our stuff. DailyStraits.com is an independent website that covers all things business and entrepreneurship related. If you like what you read, a little donation from your good self will go a long way in helping us run this site successfully. Thank you!
Welcome to dailystraits.com.Please send all interview requests and press releases to firstname.lastname@example.org. Thank you!