Subscriptions Gen Z and Millennials Should Cancel Before Summer Spending Hits
As summer approaches, spending tends to creep up. Travel, social plans and seasonal expenses can quickly stretch a budget. At the same time, many Gen Z and millennial consumers may still be paying for subscriptions they barely use.
Financial experts point out the subscriptions to get out from under before summer spending kicks in.
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Streaming Services
Summer is a riskier time for subscription creep because people tend to be busier, traveling or focus less on their finances, said Elisabella Ricca, consumer analyst at TopCashback.
Also, people often purchase multiple streaming services but really only watch a couple of shows on each. “For example, if you have Netflix, Hulu and Max, you are likely paying $30 to $60 a month — and that’s just for three services,” Ricca said.
Kevin Marshall, a CPA and personal finance professional at Amortization Calculator, added, “Each one seems small, but together they add up fast.”
Unused Gym Memberships and Fitness Apps
Fitness subscriptions are another common budget leak and may not be necessary if people are getting their exercise outdoors or pausing regular activity for summer plans.
“They can be a great investment, but if you don’t use them enough, the cost can outweigh the benefits,” said Ricca.
Marshall said that digital fitness alternatives add to the problem by being easy to subscribe and forget about.
Forgotten Free Trials and App Subscriptions
If you’ve signed up for a free trial subscription that you think might make your summer more fun or easy, these are easy to forget, Ricca warned.
“Setting a reminder on your phone the day before the trial expires is a good habit to avoid unnecessary charges,” she said.
Melanie Musson, finance expert with Clearsurance, added another overlooked category: “People almost never realize they’re paying for cloud memory.”
Overlapping Services That Do the Same Thing
One of the fastest ways subscriptions drain your budget in general is double-subscribing.
“If two subscriptions do the same thing, you’re paying twice,” said Marshall. “Even $15 a month wasted adds up to $180 a year.”
How To Audit and Cut Subscriptions Quickly
The fastest way to fix the problem is to review what you’re actually paying for by looking at your past couple of bank statements. “Keep your eye out for charges that include the words ‘subscription,’ ‘monthly,’ or ‘membership,’” said Ricca.
Marshall recommended writing down every subscription from your statements and being honest about your usage. “Did I actually use this? If not, cancel it,” he said.
How Much You Can Save
Cutting subscriptions may seem minor, but the savings add up quickly, especially heading into an expensive season.
Ricca estimated that the average amount people can realistically save by cutting back on unused subscriptions is around $200 a year. "For Gen Z, this number is closer to $275.”
Marshall thinks the number could be even higher, as much as $1,200 per year.
“Any extra cash you free up by canceling subscriptions can be put toward debt," Ricca said. "If you’re out of debt, use it to make extra payments on your mortgage or invest it toward retirement.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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