DEAR IDA: I’m a 43-year-old working mom, and I feel like my checking account is being nibbled to death by ducks. Every time I turn around, there’s another “small” subscription hitting our bank: streaming services, music apps, cloud storage, grocery delivery, meal kits, tax software, fitness apps—you name it, we probably have it. None of them look like much on their own, but together they’re eating up a shocking chunk of our monthly budget, and half the time I don’t even remember signing up. My husband shrugs it off as “the way everything works now,” but I’m tired of feeling like our money is on auto-pilot for companies we barely use anymore. How do I stop the subscription madness without turning into the household bad guy who cancels every little thing that brings anyone joy? – JENNY
JENNY: Like most Americans, it sounds like your family finances need a family intervention. According to a study completed the company C + R Research, respondents underestimated their monthly spend on subscription services by more than 2.5 times the amount they thought. You can cut out duplicative or unneeded services without being the bad guy, but it sounds like you will need to be the one to take the bull by the horns.
If you haven’t been tracking your finances on a monthly basis, now is the time to start. Go through all of your bank and credit card statements and make a chart of each recurring monthly subscription service and how much each one costs. You may be shocked to learn that you have more than one service that is charging you for multiple accounts. Once you’ve done your homework, call a family meeting to discuss which subscriptions can be cancelled. Offer up fun ways that the family can utilize the money saved from cancelling unused services, like a family night out at a local arcade or playing a few rounds of putt-putt golf together.
Once you’ve identified the services that aren’t being used, ask each family member to review the services that they are using and give them time to determine if the costs are worth the time they spend each month using the service. Make a realistic budget as a family for subscription services. Set another family meeting for the following month to discuss what remains on the list and give each family member an opportunity to swap out a service.
The next step is to turn the auto-pay function off for all of your optional subscriptions. Having to manually process a payment for a subscription gives you an opportunity each month to revisit whether the service is being used or worth the cost associated with it. It also helps you be more aware of companies sneaking in extra fees or increasing their monthly rate.
For the services that you do want to keep but don’t use often, check to see if you can switch to a lower tier of service. Shop around to see if there are other providers that offer the same or similar services that are more affordable or see if there’s a bundling option available.
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