Recent research suggests that the amount of money you lose on subscriptions may be more than you think.
According to a survey commissioned by market research firm C+R Research, more than half of consumers (54%) underestimate their monthly subscription spend by at least $100. For 24%, the difference was $200 or more.
On average, consumers spend $133 a month — about $1,600 a year — more than estimates, the study showed.
“It’s a slippery slope with subscriptions because it just happens automatically and you’re not actively making that purchase every month,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.
With the explosion of subscription services over the past decade, it can be difficult to keep track. For media and entertainment-only, the average number of paid subscriptions per consumer was 12 in 2020, according to Statista. Millennials had the most: 17.
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Because subscriptions are often automatically charged to a debit or credit card, it’s easier for users not to notice the cost. The survey found that most people (86%) rely on Autopay for at least some, if not all, of their subscriptions.
Meanwhile, 42% said they forgot they’re still being billed for a subscription they no longer use.
lost track? There is an app for that
“It’s the rare person who doesn’t have at least one insidious charge that they’ve forgotten,” said Kathryn Hauer, CFP at Wilson David Investment Advisors in Aiken, South Carolina.
For those who want a better grip on how much they’re spending and on what, it’s worth considering an app like Truebill or Mint that lets you track your subscriptions. Many banks or credit card companies also allow you to view your recurring charges in one place through your account.
Taking a closer look at your subscriptions can also help you plan your budget better so you don’t overspend.
“It really comes down to organization,” Boneparth said.
“The more organized you are in terms of cash flow, the better able you are to see what you do and don’t want to spend your money on,” he said.
The survey for the study was conducted among 1,000 consumers in late April and early May.