More than three-quarters of Australians will implement spending bans in 2025, according to new research from Compare the Market.* The latest data revealed that 77.4% of Australians surveyed admitted they would reduce spending in the New Year to save money.

Perhaps unsurprisingly, takeaway meals are facing the chopping block for many, with a quarter of Aussies (24.3%) surveyed saying fast food would be the top thing they give up to boost their savings.

Top spending cutbacks for 2025:

1. Takeaway meals: 24.3%
2. Clothes: 9.2%
3. Holidays/travel: 7.2%
4. Streaming services: 5.5%
5. Takeaway drinks/coffees: 5.5%

However, the data revealed that younger generations were far more likely than their older counterparts to ditch takeaway meals in an attempt to save money. A huge 34.2% of Millennials said they would spend less on takeaway meals in 2024, compared to just 14.4% of Baby Boomers.

Compare the Market’s Chris Ford said there could be a reason why fast food is the first to get the flick when Australians want to see a boost to their savings.

“We see a lot of people vow to live a healthier lifestyle in the New Year, so it’s not all that surprising to see so many Australians saying they’ll cut back on takeaway meals in 2025,” Mr Ford said. “What was surprising was the discrepancies between the different generations. More than two times the number of Millennials or Gen Z say they’ll cut back on takeaway meals compared to Baby Boomers.

“It could be that younger generations traditionally spend more on eating out and are conscious that this is chewing into their savings. Similarly, if you’re looking to feed a family or treat yourself during the work week, takeaway meals don’t always come cheap. Depending on what you get and whether you’re purchasing through a food delivery app, it doesn’t take long for the costs to add up. It makes sense that Australians would choose to save by ditching a sneaky burger or pizza over other expenses.”

Behind takeaway meals, the data revealed that around one in 10 Australians (9.2%) weren’t planning on updating their wardrobe in 2025. However, it was much higher for Gen Z at a rate of 17.6%, which was more than double Millennials at 6.3%.

Travel ranked among the top three 2025 spending cutbacks, with 7.2% of Australians surveyed planning to abstain from holidays in the New Year to save money.

“We know the price of airfares have skyrocketed in the post-COVID world and travel is one of the top things that Australians avoid in an attempt to boost their savings,” Mr Ford said. “Even domestic travel costs have spiked in recent times, particularly with those airlines that service regional areas shutting up shop.

“We’re more likely to see younger generations cut back on everyday expenses like takeaway meals and drinks, but Baby Boomers are more likely to say they’ll travel less to boost their savings. Given that we’re not entirely out of the woods when it comes to the cost-of-living crisis, it makes sense that we’d see these high-ticket hobbies or activities scaled back in 2025.”

Elsewhere in the survey, the data found Aussies would cut back by spending less on:

• Streaming services: 5.5%
• Takeaway drinks and coffees: 5.5%
• Alcohol: 4.6%
• Vaping/smoking: 3%

“The trend we’re seeing is that Australians plan on saying no to what may be seen as life’s little luxuries to boost their savings,” Mr Ford said. “We’d also encourage Australians to see if they can save in other ways without completely giving up the things they love.

“For example, you could use the downtime between Christmas and the New Year to assess whether there are any savings available on your current energy plan or insurance costs. You may be paying too much without realising it, which could leave you with more money in 2025 to enjoy the things you love.”

Mr Ford said there were many ways to boost your savings account in 2025.

1. Do your research – no matter what you’re buying. Whether you’re at the supermarket, dealing with an insurance renewal, filling up at the petrol pump or getting your utilities in order, always shop around and get the best deal possible. Putting all your expenses under the microscope should be at the top of your 2025 to-do list.
2. Don’t accept renewals or price hikes. We’re expecting some household expenses and insurances to increase again in 2025. Spend some time ensuring you’re not paying a cent more than you need to and compare your options to understand if you could save by switching.
3. Utilise the rewards and deals you already have access to. Whether it’s a grocery store shopping app or discounts available through your Insurers, energy retailers or roadside assistance programs, you may have access to exclusive discounts and deals that can help lower bills. See if you could utilise any rewards to stretch your dollar further.
4. Are you entitled to rebates and discounts? You may be entitled to an array of rebates, concessions, rebates, discounts simply for being a concession card holder, Seniors Card holder or even a student. Check with individual retailers if you’re entitled to any discounted rates or rebates.

*Survey of 1,006 Australian adults, conducted in October 2024.

For more information, please contact:  

Phillip Portman | 0437 384 471 | [email protected]

Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.