What is Subscription Spending?
Definition
The total amount of money allocated to all active subscription services over a given time period.
Understanding Subscription Spending
Average subscription spending has risen dramatically — studies show the average American spends $273/month on subscriptions, up from $72/month in 2018. This includes streaming, software, fitness, news, and other digital services. Most people underestimate their total subscription spending by 2-3x because individual charges seem small.
Tracking total subscription spending reveals the true impact on your budget. Categories with the highest spending are typically streaming entertainment, software tools, and fitness/health. Quarterly reviews of total spending help identify optimization opportunities and prevent subscription creep.
Related Terms
Subscription Management
The ongoing process of tracking, optimizing, and controlling all active subscriptions to ensure maximum value and minimum waste.
Budgeting
The process of creating a plan for how to allocate income, including accounting for recurring subscription expenses.
Subscription Audit
A systematic review of all active subscriptions to evaluate their value, identify unused services, and optimize spending.
Subscription Creep
The gradual, often unnoticed increase in the number and total cost of subscriptions over time.