Kiddipedia Financial Support Information
- 63% of Australians stress about money with 54% concerned about the impact of rising interest rates
- Three-quarters of Aussies shocked by recent electricity and gas bills with 37% struggling to pay bills
- More people (8% lift) cutting back on discretionary spending since September
- Two-thirds of Australians have cut back on spending in the last three months, 5% more than the previous quarter
- More Australians (82%) shopping around to save money, also up 5% than the previous quarter
More than two-thirds of Australians are stressing about money as rising interest rates and skyrocketing power bills hurt the household budget.
Compare the Market’s latest Bill Shock Survey revealed that 75% of Australians have been shocked by recent electricity bills with an increase in those cutting back on spending.
The latest edition of the quarterly report paints a troubling picture for households who are struggling to make ends meet, as more people scrimp and save to afford everyday essentials.
Despite any efforts to save, Australians say they are spending more at the bowser and at the supermarket checkout, but they are shopping around more for better deals in the last quarter.
Average household spend on living expenses
| Living cost | September 2021 | April 2022 | June 2022 | $ difference in last quarter |
| Petrol (per month) | $117 | $189 | $192 | ^ $3 |
| Groceries (per week) | $170 | $180 | $184 | ^ $4 |
Source: Compare the Market’s Bill Shock Survey September 2021, April 2022 and June 2022
Compare the Market’s Chris Ford said concerns had been on the rise since the end of last year.
“It’s really concerning that just under half of Australians stress about their finances on a weekly basis while one in five are anxious about money every day. Those figures have risen 3% in the last quarter and 10% in the last six months.
“There was a 5% increase in Australians cutting back on discretionary spending in the last three months as Australians question whether they can afford eat out, adjust their shopping habits for clothes and shoes as well as their holiday plans.”
More than half (54%) of Australians are concerned about the impact of rising interest rates with 93% of respondents concerned about a possible recession in the next 12 months. Of those 93%, more than half are worried about their ability to afford essential things while others (39%) were concerned about family members in less stable positions.
How people have adjusted at the supermarket in the last quarter
| Grocery adjustment | April 2022 | June 2022 | % increase |
| Skipping meals | 6% | 9% | ^ 3% |
| Buying more frozen foods | 11% | 16% | ^ 5% |
| Eating less meat | 16% | 18% | ^ 2% |
| Looking harder for discounts | 20% | 24% | ^ 4% |
| Switching to home brands | 15% | 17% | ^ 2% |
Source: Compare the Market’s Bill Shock Survey April 2022 and June 2022
More than 60% said they were reining in spending at the supermarket with a shift in strategies to save at the shops since the last research was completed in April of this year.
There was a 5% increase in people buying more frozen food in the last quarter as well as an increase in those eating less meat (2%) and switching to home brands (2%).
Sadly, there was also a 3% increase in those skipping meals in the last three months to reduce costs, with nearly one in ten Australians now giving up a meal during the day in order to save.
People have also been shopping around to save money on petrol (60%), energy plans (24%) and insurance products (27%) – all of which have increased in the last three months.
The difficult year is not going to get easier anytime soon according to Mr Ford who said rising rents and mortgage rates will continue to add more pressure to household budgets in the coming months.
“The rate rises will continue to hurt the hundreds of thousands of homeowners who have never experienced higher rates,” Mr Ford said.
“Our figures show there’s already a lot of nervousness. It’s important mortgage payers start to plan and manage as the changes continue to impact the rising cost of living.
“Australians have already shifted their spending habits and are doing all they can to escape the cost-of-living pinch that is seemingly closing in. Thankfully, households have found great ways to save by shopping around for better deals which will hopefully put them in a stronger financial position for the long-term,” Mr Ford said.
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, travel and personal finance products from a range of providers. Our easy-to-use comparison tool enables consumers to find products that best suit their needs and back pocket.
