Data from open banking provider Frollo shows that Australian households are spending more on groceries, petrol, and insurance in 2022. 

A sample of 35,000 Australian transactions was analysed, weighted by age to match the Australian population.

According to a comparison of 35,000 users of the Frollo personal finance app between May – July 2022 and the same period in 2021, grocery spending rose 18% from $592 to $663 per month. 

Following the ABS’s announcement that inflation surged to 6.1% in the June quarter, this news does not come as a surprise. Average fuel spending in May and June was also significantly higher than the corresponding period in 2021, even though the previous government had cut the fuel excise. The average household fuel spend increased 19% in 2022, from $102 to $121.

Other areas where Aussie households are spending more than last year are healthcare and medical expenses (up 18%, from $197 to $232) and insurance (up 13% from $282 to 318).

Boomers are renovating and eating out in 2022

While each age bracket is spending more in 2022, there are some clear differences between generations in terms of where the money is spent.

‘Home renovation and maintenance’ spend in 2022 will rise by 164%, driven primarily by baby boomers, who will spend more than double their monthly expenditure on this category from $244 to $646. In comparison with other generations, boomers saw a small increase in groceries (+1.7%) and fuel spending (1.9%).

Gen X seems to be most impacted by the fuel price increases, spending 34% more on fuel per month in 2022 than in 2021 (from $115 to $155). During the lockdowns of May and July 2021, Gen X could also be more inclined to drive to work again this year.

Hospitality is another category where there is a clear difference between 2021 and 2022 based on the spend data. A monthly spending of $1,675 has increased to $2,048 in restaurants, pubs, cafes, and takeaways, up 22%. Even though each generation spends more in hospitality in 2022, Boomers have spent the most (+35%) and Millennials have spent the least (+11%).

The importance of money management

With inflation and interest rates increasing, many Australians are facing mortgage stress or even financial hardship. Most Australians have at least two different banking relationships and five or more different financial products, so keeping track of finances can be challenging.

Money management apps like Frollo offer users an overview of all their finances in one central place, smart insights to understand their financial situation and the tools to improve their finances. 

Despite their slow start, banks are catching up. Customers at Beyond Bank can now monitor all their finances, including their accounts with other financial institutions, through an app that was recently released. To help customers better manage their money, CommBank, Bank of Queensland, and Virgin Money Australia have integrated spend graphs, insights, and budgeting tools in their banking apps.

When money management tools are done right, they can have a profound impact on the lives of Australians. The average Frollo user:

• Reduces their credit card debt by $470 in the first 6 months
• Reduces personal loan debt by $4,200 in the first 6 months
• Increases their savings by $1,200 in the first 3 months

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