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There’s a good chance you don’t have good control over how much your subscription is actually costing you.
a. According to the U.S., Offhand estimates consumers spend $86 monthly on subscriptions. Survey Commissioned by market research firm C+R Research. Yet when asked about membership in specific categories, the actual amount averaged $219—$133 more than estimated.
“It’s a slippery slope with membership because it happens automatically and you’re not actively shopping every month,” said certified financial planner Douglas Bonparth, president of Bon Fide Wealth in New York.
With the explosion of subscription services over the past decade, keeping track of them all can be challenging. For media and entertainment offerings only, the average number of paid subscriptions per consumer in 2020 was 12, according to statista, Millennials had the most: 17.
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Since subscriptions are often charged automatically to a debit or credit card, it is easy for users to ignore the cost. The survey showed that most people (86%) have at least some, if not all, of their subscriptions on Autopay.
And 42% said they forgot they were still being charged for a subscription they no longer use.
“It’s the rare person who doesn’t have at least one sneaky allegation they’ve forgotten about,” said Katherine Hauer, a CFP with Wilson David Investment Advisors in Aiken, South Carolina.
Nearly a third (30%) of those surveyed for the C+R study underestimated their membership cost by $100 to $199. Another 24% were closed at $200 or more.
For anyone who wants to get a better grip on how much they’re spending and on what, it’s worth considering an app like Truebill or Mint that allows you to track your subscriptions. Many banks or credit card companies allow you to view your recurring charges through your account in one place.
Taking a closer look at your subscriptions can also help you budget better so you don’t overspend.
“It really comes down to organization,” Bonparth said. “The more you organize around cash flow, the more you can identify what you want or don’t want to spend your money on.”
The survey for the study was conducted among 1,000 consumers in late April and early May.