Time to check your subscription services

How many subscriptions do you have right now? If you are not sure, it may be time to take a closer look at what you are paying for each month. Subscription services can be convenient, but they can also keep you paying for products or services you no longer need or use if you are not keeping track. Retailers like to pair the word subscribe with the word save to make it seem like you are saving money rather than committing to spend it. Saving money certainly sounds appealing, but if you are not careful, a subscription could end up costing you more than it saves.

Video streaming may be one of the first subscription services that comes to mind, especially given how many options are available. If you want to watch a particular program, it may only be available through a specific streaming service. Before you know it, you may have multiple subscriptions just to watch a favorite show on each provider.

However, streaming services are only the beginning. Memberships are available through gyms, airlines, warehouse clubs, retailers, and many other businesses. Subscription boxes can regularly deliver everything from beauty products and meal kits to toys and activities for children. Music, apps, cloud storage, software, and other digital services can also add recurring charges to your monthly budget.

Are you really saving?

Some subscriptions and memberships offer benefits such as free shipping, special pricing, discounts, or rewards. While those benefits may be enticing, it is important to periodically review your spending to determine whether the membership is actually saving you money.

Consider how often you use the benefits and how much you would spend without the subscription. You may even find yourself purchasing more because you want to "get your money's worth" from a membership. Research has found that joining a retail subscription program can increase customer purchases and influence spending behavior (Iyengar et al., 2022). So, if a subscription encourages additional spending that you otherwise would not have made, those savings may not really be savings after all.

Watch for promotional periods

Another thing to watch for is a promotional period. A company may offer a reduced rate or even a free trial that automatically renews unless you cancel. You may also receive an introductory rate that increases after a certain period.

Before signing up, make sure you know the answers to these questions:

• How much will the service cost during the promotional period?
• When will the promotional period end?
• What is the regular price?
• Does the service renew automatically?
• How and when do you need to cancel to avoid the higher price?

If you are only interested in the service at the promotional price, consider setting a calendar reminder before the promotion ends. You can then decide whether the service is still worth the cost before paying the regular rate.

Small monthly costs can add up

Individually, subscription costs may not seem like much. Unfortunately, those costs can add up over time, especially if you have multiple subscriptions. Consider this example:

*This example assumes the subscription prices remain the same over time.

A $10 or $15 monthly subscription may seem reasonable on its own. When several recurring expenses are combined, however, the total can become much more significant. In this example, $129 in monthly subscriptions amounts to $1,548 over the year. If those expenses continued unchanged, they would total $15,480 over 10 years.

Of course, that does not mean every subscription is a bad financial decision. If you regularly use and enjoy a service and it fits comfortably within your spending plan, it may be well worth the cost. The key is to make sure you are intentionally choosing to pay for it, rather than paying simply because you forgot to cancel it.

Review your subscriptions 

Take some time to review your bank and credit card statements for recurring charges. Research on subscription payments suggests that people may continue to pay for subscriptions they no longer value because they are not paying attention (Einav et al., 2025). For each subscription, ask yourself:

• Do I still use this? How often do I use it?
• What does it cost me over an entire year?
• Has the price increased since I signed up?
• Could I switch to a less expensive plan?
• Do I have another subscription that provides the same benefit?
• Would I sign up for this service again today at its current price?

If the answer to that last question is no, it may be time to cancel.

If you are still tempted to subscribe to something, consider subscribing to this blog. The articles are free and delivered monthly by email to help support positive financial behaviors, at no cost to your budget.

References

Einav, L., Klopack, B., & Mahoney, N. (2025). Selling subscriptions. American Economic Review, 115(5), 1650–1671. https://doi.org/10.1257/aer.20231612

Iyengar, R., Park, Y.-H., & Yu, Q. (2022). The impact of subscription programs on customer purchases. Journal of Marketing Research, 59(6), 1101–1119. https://doi.org/10.1177/00222437221080163