Australians are spending more than $5 billion a year on pay TV.

A new study by Mozo.com.au has revealed the youth of today are increasingly wasting money on lifestyle expenses that their parents would have considered luxuries.

From cancelling the Netflix subscription to skipping weekend brunch or quitting smoking, the average Australian could save $7800 a year by cutting back on unnecessary expenses, the comparison website found.

Mozo asked Australian adults how much they spend on 30 common lifestyle expenses. In total, Aussies are frittering away an eye-watering $12 billion a month, or $144 billion a year.

The top money-wasters were clothes and shoes ($23.2 billion a year), cigarettes ($14.5 billion), restaurants and takeaway ($20.6 billion) and gambling ($6.9 billion).

“Aussies are paying a high price for our vices, squandering a staggering $32.8 billion annually on cigarettes, gambling and going out drinking,” said Mozo Director Kirsty Lamont.

“Even though four out of five adults don’t buy them at all, cigarettes were the second biggest single expense, costing $14.5 billion each year and coming second only to spending on clothes.”

Younger Australians are the worst offenders, with three in 10 of those aged 25 to 34 spending money on cigarettes, compared with just eight per cent of over 65s, the study found.

They are also more likely than older Australians to waste money on lifestyle expenses such as video or mobile phone games, skincare treatments and weekend brunches.

A third of 25 to 34-year-olds spend money on massages, compared with just eight per cent of over-65s. Under-25s, meanwhile, are the biggest bottled water guzzlers, with over half spending up to $40 a month, compared with a quarter of over-65s.

Generation X and Y are most likely to resort to takeaway dinners. Ninety per cent of 25 to 44-year-olds say they spend money on takeaway, compared with two-thirds of over-65s.

Mozo director Kirsty Lamont.Source:News Corp Australia

Young Aussies are also far more likely to spend money on weekend brunches at cafes — over two-thirds of under-35s compared with just one-third of over-65s

And 30 per cent more under-25s than over-65s spend money on gadgets like smartphones, Fitbits and video game consoles.

Unsurprisingly, around half of under-35s spend money on gyms and sporting clubs compared with fewer than one fifth of over-45s.

“Our research shows that overall, older Aussies are the most frugal while the younger generations are the most likely to fritter their cash away on a host of expenses including buying lunch out, bottled water and clothes and shoes,” said Ms Lamont.

The main categories where older Australians chose to splash out were vitamins, gambling — including lotteries such as sports betting, poker machines and scratchies — and magazine and newspaper subscriptions.

Half of over-55s spend on magazine and newspaper subscriptions compared with around a quarter of under-25s.

Older Australians spend the least on clothes and shoes — three-quarters of over-65s spend less than $100 a month, while half of under-35s spend more than $100.

And older Australians are less likely to go out drinking — only a third of over 65s say they spend money on drinks at pubs or bars.

“Gambling is one of the few indulgences for older Aussies, with more than three in five over 55s spending money on poker machines, scratchies and sports betting,” Ms Lamont said.

The research is proof that small expenses can add up, she added. “Would-be savers are always being told to keep track of all their spending, but recording every bottle of water or iTunes purchase can get dreary.”

The study was based on a nationally representative survey of more than 1000 Australians, with spend calculated based on the most recent Australian Bureau of Statistics data.

AUSTRALIA’S TOP 10 MONEY WASTERS

1. Clothes and shoes — $23.2 billion

2. Cigarettes — $14.5 billion

3. Restaurant dinners — $11.4 billion

4. Takeaway dinners — $9.2 billion

5. Gambling — $6.9 billion

6. Weekend brunch — $6.7 billion

7. Lunch at work — $6.7 billion

8. Coffee — $6.4 billion

9. Tech gadgets — $5.4 billion

10. Pay TV or streaming — $5.1 billion

Source: Mozo.com.au