Despite inflation worries, Americans are less likely to cancel Amazon Prime, Netflix than cut spending on food

Personal Finance

In this article

Netflix may as well be a necessity.

Even as Americans cut back in the face of rising prices and recessionary fears, fewer want to give up their streaming subscriptions, especially when it comes to TV, movies and music services, such as Amazon Prime, Netflix and Spotify.

Roughly two-thirds of consumers said they will have to decrease their spending due to inflation; however, only about a quarter plan to cancel such subscriptions in the months ahead, according to a recent report by the National Research Group.

Most people said they were more likely to cut back on dining out, groceries and clothing.

More from Personal Finance:
Nearly half of Americans make this mistake with credit cards
These steps can help you tackle stressful credit card debt
Inflation and higher rates are a ‘dangerous mix’

Consumers are least likely to cancel Amazon Prime, TV and movie streaming services and home security systems, the report found, even over food and gasoline.

“It’s clear that people value their streaming subscriptions more than ever,” said Kerri Norton, executive vice president of content and strategy at the National Research Group.

Just over half, or 51%, also said subscriptions now make up a “significant” portion of their monthly spending.

On average, U.S. consumers estimate they spend $135 a month and 17.8% of their monthly budget on subscriptions, the National Research Group found. The report polled more than 2,500 adults in August.

Don’t let subscriptions become a ‘sneaky’ budget buster

In fact, your Netflix habit may be more expensive than you think.

Because subscriptions are often automatically charged on a debit or credit card, it’s easier for users to lose track of the recurring cost.

“It’s the rare person who doesn’t have at least one sneaky charge they’ve forgotten about,” Kathryn Hauer, a CFP with Wilson David Investment Advisors in Aiken, South Carolina, recently told CNBC.

Most consumers underestimate how much they spend on subscription services every month by at least $100, according to a separate survey commissioned by market research firm C+R Research.

Further, families have less slack in their budgets than before, and reeling in those recurring monthly expenditures is a great way to save money, many financial experts say.

Subscribe to CNBC on YouTube.

Products You May Like

Articles You May Like

China eases Covid restrictions on travel and production
Jim Cramer says these 3 apparel stocks benefit from return to office
Long Covid is distorting the labor market — and that’s bad for the U.S. economy
The easiest way to travel full time? See what a 28-year-old paid for an apartment on a cruise ship
360,000 student loan borrowers received $24 billion in forgiveness from fix to Public Service Loan Forgiveness

Leave a Reply

Your email address will not be published. Required fields are marked *