Australia’s 10 biggest money wasters

Drew Patchell

7 years ago

New research shows that Australian households are literally throwing money away, with the average household spending $5365 per year on the top 10 biggest money wasters.

The analysis was conducted by comparison site Mozo to highlight reasons why Australians are hurting financially and how to recoup some of that wasted expenditure.

“Review your purchasing habits, take note of food or clothing that you might discard and study your household bills. A few small changes can result in major savings,” said Mozo Director Kirsty Lamont.

Tobacco tops the list at $1734 per household, while food waste comes in second, above gambling, credit card interest and bank fees. Household energy waste, traffic fines, ATM fees, clothing and unused gift cards round out the list, which totals $1922 per person and forms a national total annual wastage of $46.9 billion.

Australia’s 10 biggest money wasters

Item

Total annual spend (billions)

Total spend per household

Total spend per person

Tobacco

$16.3B

$1,734

$667

Food waste

$8B

$950

$328

Gambling

$6.7B

$796

$275

Credit card interest

$5.5B

$653

$226

Bank fees

$4.3B

$511

$176

Household energy waste

$3.3B

$389

$135

Traffic fines

$1.3B

$154

$53

ATM fees

$0.64B

$76

$26

Clothing

$0.5B

$59

$21

Unused gift cards

$0.36B

$43

$15

TOTAL

$46.9B

$5,365

$1,922

Source: Mozo.com.au, September 2017

Credit card interest and bank fees are avoidable wastage, which cost the average household $1164 per year. According to Ms Lamont, these charges can all be simply avoided through a bit of common sense and try comparing products.

“It always pays to compare credit cards to ensure you’ve got the best card for your spending habits, and if you can’t pay it off, refinance and pay your debts,” she said.

What do you think of the research? Is it helpful and has it made you think twice about your household budget and spending habits, or is it all just common sense?