May 8th 2024.
As we approach the release of the federal budget on May 14, 9news.com.au and reporter Joel Gibson are working together to shed light on the financial struggles faced by Australian families. In particular, families with young children are feeling the impact of rising weekly expenses more than most.
From the state of the paid parental leave scheme and interest rate increases by the Reserve Bank of Australia, to the ever-increasing cost of groceries, parents are finding it incredibly tough to make ends meet. A recent report by 9news.com.au highlighted the story of Paige and Daman Sandhu, a couple from Marsden Park in Sydney's north-west, who are feeling the pinch of these financial pressures.
With a one-year-old daughter named Aria, the Sandhus have been able to cut down on their weekly expenses by being mindful of their supermarket spending. However, their biggest financial burden comes from their mortgage payments. Paige, aged 26, shared with 9news.com.au that their mortgage has been a constant source of stress for their family, on top of the costs of nappies, formula, groceries, and bills.
In the midst of this cost-of-living crisis, Paige and Daman have been able to save money in some areas. Both of them work at a restaurant, which provides them with lunch and dinner, saving them on takeaway meals and groceries. However, Paige acknowledges that they could use an extra $250 to $300 per week to make things feel more manageable.
Looking ahead to the federal budget, Paige expressed her hope for improvements to the paid parental leave scheme. The Sandhu family's weekly expenses include $1150 for their mortgage, $80 for groceries, $14.25 for streaming services, $120 for phone bills, $15 for bulk nappies and baby wipes, $45 for petrol, and $24.75 for NBN. This brings their total weekly expenses to $1359.
Despite these financial challenges, the Sandhus have been able to save money on their energy bills thanks to their solar panels. Their most recent energy bill was just $20 for the whole quarter. Taking a closer look at the Sandhus' weekly expenses, personal finance expert Joel Gibson provided some helpful tips for cutting down costs.
He suggested that the Sandhus could save even more on their energy bill by switching to a plan with a better solar feed-in tariff. Currently, they are receiving 10c per kilowatt-hour, but there are plans available with even bigger feed-in rates. For example, Engie offers a plan with a 12c feed-in tariff, which could potentially eliminate their energy bill altogether.
Gibson also pointed out that streaming services can be a major source of expense, with prices constantly on the rise. He recommended canceling and resubscribing to services in between shows to save money. Downgrading to a lower plan is also an option, with potential savings of $192 per year for Netflix's Basic tier with ads, $120 per year for Kayo's one-screen option, and $48 per year for Disney's standard plan.
In terms of mobile expenses, Gibson found that the Sandhus could save more than $200 per year by switching to a different provider. For $120 per month, Paige is currently receiving 80GB of data and a phone repayment from Vodafone. But according to leading comparison site Whistleout, Kogan and Felix offer the same amount of data on the Vodafone network for just $40 per month. Gibson also recommended keeping an eye on data usage and adjusting the plan accordingly, potentially saving hundreds of dollars in the long run.
When it comes to buying baby supplies, Gibson advised the Sandhus to shop around and look for deals. He noted that they are lucky to have a low grocery bill, but buying in bulk and taking advantage of sales can save even more money. They could also consider joining Costco, where they can purchase 184 size 3 Huggies nappies for $63, compared to 90 nappies for $43 at Woolworths. By switching to a cheaper brand like Aldi's Mamia nappies, they could potentially save 50%. Amazon also offers deals on nappies and wipes, especially during Prime Day in July.
In terms of their mortgage, Gibson suggested shopping around for lower rates, as even a small difference can add up to thousands of dollars over time. He also recommended using a platform like Joust to find the best rate without the hassle of shopping around yourself.
In conclusion, while the Sandhus are facing financial challenges, there are ways for them to save money on their weekly expenses. With the help of Joel Gibson's tips and advice, they could potentially save over $1000 per year. However, it's important to note that the information provided is general in nature and should be considered in light of one's personal objectives, financial situation, and needs before taking action.
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