The NAB Consumer Sentiment Index reveals trends in cost-of-living spending.

Australians struggling with a prolonged cost-of-living crisis are making “emotional” spending decisions, cutting out services like Netflix and small treats like coffee and snacks to maintain spending on what they cherish most: pets and their children.

According to NAB’s latest consumer sentiment survey, these cutbacks are saving households about $320 a month on average.

Among the 2,000 people surveyed, 57 percent have reduced dining out, and 49 percent have cut back on coffee, snacks, and streaming services. In contrast, only 14 percent have decreased spending on children’s activities like sports and dance classes.

“When the cost-of-living crunch started, we saw early signs of people making cutbacks here and there. What we’re seeing now is that this pattern of behavior has become entrenched in our everyday lives,” said NAB personal everyday banking executive Paul Riley.