Americans Would Rather Cut Back on Groceries Than Stop Their Netflix Subscription, New Study Finds
Written by
Dawn Allcot
Edited by
Rikki Elliot
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With the pinch of inflation, many Americans are looking at their budgets and finding places to cut back. But there’s at least one line item not on the chopping block: streaming services.
A poll from the National Research Group, recently reported by CNBC, found that people were more likely to cut back on grocery purchases, dining out, or buying clothes than they would be to drop Amazon Prime, Netflix or Spotify Premium subscriptions.
The survey found that two-thirds of consumers will decrease their spending due to inflation — but only 25% would cancel their streaming services.
More than half of respondents said that streaming makes up a “significant” portion of their monthly spending. It seems all the cord-cutters who disconnected cable to save money only enjoyed short-term savings. U.S. consumers estimate they spend $135 per month — or 17.8% of their budget — on subscriptions, according to the National Research Group study.
However, U.S. consumers could actually be spending even more than that. Another survey reported by CNBC discovered that 54% of those polled underestimate their monthly subscription payments by at least $100. Further, in 5% of cases, they are underestimating by $400 or more.
Because monthly subscriptions are usually billed automatically, it’s easy to forget about how much money you are spending on them.
It can help to review your services every few months and decide what you really need. You can also use a service like Rocket Money or BillCutterz to track your subscriptions and easily cancel the ones you don’t use or have forgotten about.
Don’t let sneaky subscription spending wreak havoc on your budget. You can prioritize what’s really important and maybe free up funds for the occasional dinner out — or a new fall outfit.
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