That seemingly innocent $9.99 monthly charge might be costing you more than one month of your mortgage payment. No, really.
A new study reveals that more than a third of Americans are genuinely shocked when they discover how much they’re actually spending on video and TV subscriptions each month. Even more startling? The average American is bleeding nearly $1,900 per year on subscriptions they’ve signed up for and forgotten about.
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If you’re thinking “that can’t be me,” you might want to grab your bank statement before reading any further because over a third of Americans are shocked they’re paying this much in subscriptions every month.
The $51 Monthly Reality Check No One Saw Coming
Here’s the wake-up call: Americans are underestimating their monthly subscription spending by an average of $51.49. That’s over $600 per year disappearing from budgets without people even realizing it.
The worst offenders by state:
- Virginia residents are the most off-track, underestimating by $116.83 monthly (that’s $1,401.96 annually!)
- New York follows close behind at $116.37 monthly.
- California rounds out the top three with residents spending $98.03 more than expected.
Meanwhile, Oregon residents came closest to reality, only underestimating by $7.97 monthly — proving some Americans do have a better grip on their spending habits.
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Video Subscriptions: The Budget Killer You Invited In
The biggest culprit? Video and TV subscriptions, where Americans spend an average of $50.15 monthly. Think about it: Netflix, Hulu, Disney+, HBO Max, Apple TV+, Amazon Prime Video, ESPN+ — those “small” monthly fees add up faster than episodes of your favorite binge-watch.
The top subscription categories draining budgets:
- Video/TV services: $50.15 per month
- Education and career: $40.29 per month
- Budgeting and investing: $40.17 per month
- Physical and mental health: $38.81 per month
- Gaming subscriptions: $29.85 per month
What makes video subscriptions particularly dangerous is how easy they are to accumulate. One service for the kids, another for sports, a third for that show everyone’s talking about — before you know it, you’re paying more for streaming than you ever did for cable.
Why This Hits Harder During Economic Uncertainty
With inflation still squeezing household budgets and economic uncertainty looming, these “forgotten” subscription costs can be the difference between financial stress and breathing room. When every dollar counts, spending $1,900 annually on services you barely use becomes a luxury many can’t afford.
The subscription trap is real. First comes the easy sign-up, then the auto-renewal and then you don’t notice the relatively small charges and finally you believe you’ll cancel later (but never do).
The study found that signing up for online services is “incredibly easy — perhaps too easy.” One click and you’re committed to monthly payments that can stretch indefinitely.
How to Audit Your Subscription Spending (And Actually Save Money)
Step 1: The Subscription Inventory
- Check your bank and credit card statements for the past three months
- List every recurring charge, no matter how small
- Include annual subscriptions (divide by 12 for monthly cost)
- Don’t forget services bundled with other purchases
Step 2: The Honest Usage Assessment
- When did you last use each service?
- Could you live without it for 30 days?
- Are you paying for premium features you don’t need?
- Do you have duplicate services (multiple music or video platforms)?
Step 3: The Strategic Cuts
- Cancel duplicates immediately: You don’t need three music streaming services
- Downgrade plans: Maybe you don’t need 4K streaming or ad-free everything
- Seasonal subscriptions: Subscribe only when new content releases, then cancel
- Share family plans: Split costs with relatives or trusted friends
- Use free alternatives: Many paid services have free versions that might suffice
Step 4: The Prevention System
- Set calendar reminders before free trials end
- Use a dedicated debit card for subscriptions (easier to track)
- Review subscriptions monthly, not yearly
- Ask yourself: “Would I sign up for this today at this price?”
The Bottom Line
Nearly half of Americans weren’t surprised by their actual subscription spending, suggesting many people are aware they’re overspending but haven’t taken action. If you’re in the shocked third, you’re not alone but more importantly, you’re not powerless.
Some quick wins that you could implement this week, including cancel one service you haven’t used in 30 days, downgrade one premium subscription to a basic plan, set up a monthly subscription budget and stick to it and use free alternatives for at least one paid service. For instance, the library offers free movie and TV rentals through apps on your phone and smart TV.
In an economy where every dollar matters, that $51.49 monthly overspend could be your emergency fund, debt payment or investment contribution instead. Plus, the subscriptions will always be there when (and if) you’re ready to re-subscribe.
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This article originally appeared on GOBankingRates.com: Over a Third of Americans Are Shocked at How Much They’re Paying for This Expense Each Month — Should You Check Your Budget?
