Aussie households are wasting more than $5000 per year on avoidable spending, including bank fees, credit card interest charges, ATM fees and wasted food.
The worst off are those who smoke or gamble, with households wasting on average $1734 a year on tobacco and $795 on gambling, according to analysis from comparison site mozo.com.au.
Inattention is also costing Australians, with each household spending about $653 a year on credit card interest, $511 on bank fees, $76 on ATM fees and $154 on traffic fines.
The nation's second biggest money waster was food, with Australians throwing out $8 billion worth of edible food every year, which comes to an average of $950 every year per home.
The cost of fruit and vegetables has risen by about 16 per cent each year and meat increased by approximately 10 per cent, resulting in skyrocketing grocery bills.
"Australians are hurting financially due to avoidable spending habits," Mozo director Kirsty Lamont said.
"To avoid unnecessary financial waste, take a good look at where your money is going.
"Review your purchasing habits, take note of food or clothing that you might discard and study your household bills. A few small changes can result in major savings."