Five mobile phone plans under $5 a week

There was a time when $20 phone plans were something you bought for a teenager's first phone or for a grandparent who left a mobile in a drawer in case of emergencies.

These days phone plans under $20 are great value. Thanks to growing competition in the telco market, the price of basic phone plans continue to drop. Even if you're on a tight budget, you'll find there are now plans with enough calls and data to keep you contactable and connected.

Importantly, there are a couple of plan options that include unlimited calls and SMS in this price range. This is something we know parents are keen to have in plans for their kids. They might not get enough data to watch YouTube on the phone all day long but they will be able to make a phone call when they need to.

Even if you'd consider yourself someone who uses their phone quite a bit, it is worth investigating a plan in this price range first. Analyse a recent phone bill and see how you actually use your mobile before you buy and remember that you can always move to a higher value plan if you need to later on.

And be ready to forgo the latest and greatest new smartphone.

In Australia we have become prisoner to the idea of the "free phone". We expect the gift of a new handset each time we commit to a two-year contract. But the concept of the free phone is long gone. New smartphones will add as much as $30 a month to your phone plan, leaving many with a bill creeping towards $100 a month.

If you own your phone, fall in love with it again. Now is a great time to give phone contracts a miss and look for a cheaper alternative.

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