How much are subscriptions eating into your budget? 

According to an exclusive CNET survey, US adults spend an average of $91 on subscription services each month. In recent years, "subscription creep" has led to consumers paying for unwanted monthly or annual memberships. What's more, companies increase the price of existing services on short notice or without much disclosure, sometimes in tandem with rollouts of new or expanded features. The average amount paid for recurring memberships and subscriptions is likely to keep going up. 

The survey asked about the different types of services that consumers pay for, with the most common answers being streaming services, e-commerce memberships like Amazon Prime and music subscriptions. The survey also asked about how consumers manage subscription expenses, price hike communications and preferred payment methods. 

A total of 48% of respondents said they had signed up for a free trial of a paid subscription and then forgot to cancel it. Some said this had happened multiple times per year. Millennials and Gen Z adults were the most forgetful, with 65% and 59% of respondents, respectively, saying they had forgotten to cancel a trial at least once.

Nearly three in five consumers said they proactively manage their subscription costs. The top strategies were to keep an eye out for deals or cheaper alternatives (31%), start and stop subscriptions as needed (24%) and subscription bundling (17%).

Getting rid of unnecessary subscriptions shouldn't feel like a chore. CNET's past guides on the best internet and TV bundles and how to stream on a budget can help you tighten things up. The Federal Trade Commission's new "click to cancel" rule to simplify canceling subscriptions should also help you better manage services you no longer want. 

Subscription creep eats into consumers' budgets

Inflation has led to price hikes across many sectors over the last few years, whether or not a company's operating costs have actually increased. Our survey found that 67% of respondents saw one or more of their subscription services increase prices in the past year.

Some subscription creep is normal as money inherently inflates. For example, Amazon Prime debuted at a $79 annual price point in 2005, then moved to $99 in 2014, $119 in 2018 and $139 in 2022. But in that same time frame, the US dollar inflated by about 50%, according to inflation calculators pegged to the Bureau of Labor Statistics consumer price index, so this checks out. Still, subscription creep can catch consumers by surprise, particularly if your budget is tight. Small increases here and there can add up.

CNET's survey also found that:

• More than one in 10 (12%) of respondents claim their subscriptions are outside of their budget, but they pay for them anyway.
• Millennials are the generation with the highest monthly subscription expenses, at $119 per month.
• Nearly one in four respondents (24%) say they think they're overpaying for subscriptions.
• One in four respondents (25%) have had to cancel one or more subscriptions because prices increased and they could no longer afford them.

How to manage subscription costs

The FTC's new "click to cancel" rule, which is expected to go into effect later this year, should make canceling subscriptions easier. The provision is also expected to lessen the pressure of signing up for subscriptions in the first place. Importantly, this could save you money since canceling a membership or service should be as easy as it was to sign up for it. 

A budgeting app or online service that actively monitors subscription costs can also help you keep subscription creep in check. Earlier this year, CNET Money's editors selected Rocket Money as a 2024 Editors' Choice pick. When the popular budgeting app Mint shut down last month after 16 years of operation, CNET banking editor Kelly Ernst tested several alternatives and found Rocket Money to be one of the best options for budgeting because features like bill increase tracking and bill negotiation features are available to enroll in. Some of those features require, well, a paid subscription, but the charge for the negotiation service is taken from the savings earned, which isn't so bad.

Also, ask yourself if you'll still need all your streaming subscriptions as the holidays draw near. Paring down your options might be the nudge you need to spend more of your leisure time with loved ones. There's always the rotation method, survey respondents' second-most-popular cost management strategy, in which you cancel services when you're not using them and sign back up at a later date.

It's a great time of year for pre-holiday cleaning, not only with your living space but also with your wallet. Taking an hour or two to evaluate your subscription dues each month will help you save money, which is time well spent.

Methodology: CNET commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,343 US adults, of whom 1,929 are currently paying or have paid for a subscription in the past year. Fieldwork was undertaken between March 19 and 21, 2024.  The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).