What subscriptions are really costing you, according to research

While it’s tempting to say yes to unlimited reruns of RuPaul’s Drag Race, you could be curling up on the couch with some cash instead-and we’re talking up to $570 in savings from unused subscriptions.

Australian Gen X-ers are wasting up to $570 on unused subscriptions annually, according to a recent survey by ME*. The survey revealed that six out of ten of us have signed up for subscriptions and memberships, with 52% signing up for more services during lockdown.

Gen X-ers are big on subscriptions, forking out an average of $2,196 annually for a plateful of meal plans, TV, movies, music streaming and gym memberships. Almost half (48%) admitted they’ve forgotten about at least one subscription service they’re paying for, like that salad from lunch they said they’d have for dinner instead. We see you.

Here are three ways subscription services could be catching you out.

1. Add to list…and erase from memory.

The issue isn’t in the sign up but what comes after. It’s like setting New Year’s resolutions. You make a list, get excited about it, share it on social media and then it’s ‘bye Felicia.’

ME’s findings discovered over one-third of Australians aren’t using the services of their subscription at all and it’s costing an average of $200 annually in lost cash, or up to $570 for Gen X-ers.

2. The annoying auto-renewal.

So you’ve started on a free trial. You promise yourself you’ll use the app and cancel before the 14 days are over and then BAM. You get an email congratulating you on your new subscription to another app you never needed. Great!

Auto-renewals can catch many people out, so here’s a tip from ME: when signing up for free trials, set a reminder to review the service before the trial’s end date.

3. Media overload.

We all hate to pay for a product or service we won’t use, but that’s exactly what’s happening with some subscription services.
ME’s survey found that the least used memberships are:

• on-demand TV/movie streaming

• IT storage or software programs, and

• music streaming services.

If you find yourself overwhelmed by the number of services you’re subscribed to, it may be time to unleash your inner Marie Kondo and get decluttering. A simple idea is to set a reminder to regularly review your subscriptions and decide if they still bring you joy.

Subscriptions can add value, entertainment and convenience to our lives-but its important to work out how much you spend on them and get your money’s worth. The cash saved by cancelling a couple of unused subscriptions could go towards bigger financial goals.

So maybe it’s time to stop scrolling and get cancelling instead.

PS. For more money insights, hit subscribe for a week of free insights**

*ME ’s Subscription and Membership Survey is based on a national survey of 1,000 Australian adults who currently pay for memberships or subscriptions. The survey was conducted in April 2021, with fieldwork by Pure Profile.

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