Many of us have been stung by the recent cost of living situation. Whether it’s at the checkout, on a night out with friends or on bank statements, you may have noticed a surprise jump in how much we’re now paying for things.

In less surprising news, lots of young people are responding by cutting back on how much they’re spending on day-to-day and month-to-month expenses.

Recent research from NAB Economics has looked at the top categories where people reduced their spending at the end of last year, including young people (18-29 year olds). Here are where young people are making cutbacks:

1. Eating out at restaurants

More than half of young people (57 per cent) said they had reduced their spending on restaurant meals.

2. Buying treats (coffee, snacks etc.)

Just over half (51 per cent) of young people surveyed said they had cut back on “micro treats”, such as their daily coffees or snacks.

3. Entertainment

Almost half of young people (49 per cent) have trimmed back on entertainment outside of the home – such as going to the cinema or theatre.

4. Holidays 

A little under half of young people (46 per cent) said they’ve either delayed or made more modest holiday plans due to the cost of living. 

5. Car travel

With petrol prices still rising, 43 per cent of young people have reduced their car travel to save on fuel costs.

Source: NAB Consumer Sentiment Survey, Q4, 2023.

While a little more than half (53 per cent) of the young people surveyed said they were using the money they’d saved from cutting back on expenses to pay for day-to-day living, 56 per cent were also topping up their savings.

Like every article on this website, this is not personal financial advice.