Key findings:

  • 40% of Australians expect their financial situation to improve in 2026, while 28% expect it to worsen.
  • Ensuring money for essential expenses is the top reason Australians budget (64%), followed by increasing savings (56%) and avoiding overspending (51%).
  • Manual tools remain dominant, with 45% of Australians using spreadsheets to manage their budgets.
  • Among Australians expecting their finances to worsen, 63% plan to cut spending on eating or drinking out.

As households around the world continue to face cost-of-living pressures, rising prices for everyday essentials are prompting many people to rethink how they manage their money. Budgeting and spending decisions are increasingly important as consumers balance day-to-day expenses with saving.

A recent YouGov Survey explores how Australians expect their finances to change in 2026 and how they plan to manage their money in response.

How Australians expect their finances to change in 2026

Australians are more likely than people in UK and U.S. to say they expect their financial situation to improve in 2026. Overall, two-fifths of Australians (40%) expect their financial situation to improve in 2026 compared with 2025, while 28% expect it to worsen. A further 29% think their finances will stay about the same.

Financial expectations vary strongly by age. Younger adults are the most optimistic: 70% of those aged 25–34 and 63% of those aged 18–24 expect their situation to improve. Among Australians aged 35–44, 62% say the same.

Among those aged 55 and over, 43% are expecting their finances to worsen and 13% are expecting improvement. Many in this group say their finances will stay about the same (43%).

Australians more optimistic about their financial outlook in 2026

Nearly two-thirds of Australians (63%) say they have a budget for 2026, while 31% say they do not. This is slightly higher than the share who say they had a budget in 2025 (59%).

Around four in five adults aged 25–34 (84%) and 35–44 (78%) report having a budget for 2026. This compares with 62% of those aged 18–24, 59% of those aged 45–54 and 51% of Australians aged 55+.

Most Australians say they have a budget for 2026

Among Australians who have a budget for 2026, the most common reason is ensuring they have enough money for essential expenses such as food, rent and bills (64%). Over half also say they budget to increase their savings generally (56%) or to stop themselves from overspending (51%).

Slightly more than two-fifths (42%) say they are budgeting to save for something specific, such as a house deposit, car or holiday, while around a quarter (26%) say they use a budget to manage debt.

Motivations vary somewhat by age. Adults aged 35–44 are particularly likely to say they budget to increase savings (74%) and ensure they can cover essentials (74%). Australians aged 45–54 are most likely to say budgeting helps prevent overspending (63%). Among those aged 55+, ensuring money for essentials is the most common reason (70%).

Spreadsheets remain the most popular budgeting tool in Australia

Manual tools such as spreadsheets remain the most widely used budgeting method, used by 45% of Australians with a budget. Around three in ten use their bank’s financial management service (29%) or a budgeting app (28%).

Younger Australians are more likely to use digital tools. Around 45% of those aged 25–34 use budgeting apps and the same share use their bank’s financial management service. In contrast, only 11% of those aged 55+ report using a budgeting app.

Around 18% say they use a private financial or asset manager, while 16% use free financial management services such as advice organisations.

Where Australians plan to reduce spending in 2026

Australians who expect their financial situation to worsen in 2026 are more likely to say they will cut back spending across several areas. The most common reductions among this group include eating or drinking out (63%), clothing and fashion (62%), and everyday conveniences such as takeaway coffee or taxis (55%). Over half also say they will reduce spending on holidays (53%) and events or days out (53%).

Spending cutbacks are also reported by those who expect their finances to improve, though at lower levels. Nearly half (47%) say they will reduce spending on eating or drinking out, while around four in ten say they will cut back on clothing and fashion (39%), subscriptions (38%), and events and days out (40%). A third say they will reduce spending on everyday conveniences (34%) and holidays (33%).

Fewer Australians overall say they will cut back on essentials such as groceries, although 40% of those expecting their finances to worsen say they will reduce spending in this area, compared with 21% among those expecting their finances to improve. Smaller shares say they will cut back on housing or bills (20% among those expecting finances to worsen and 13% among those expecting improvement).

Where Australians plan to increase spending in 2026

Australians who expect their finances to improve are more likely to say they will increase spending in several areas during 2026. Groceries (32%) and wellness spending such as gym memberships or supplements (30%) are among the most commonly cited areas. Around a quarter say they plan to spend more on health and beauty products (23%), while around one in five expect to increase spending on holidays (21%) or housing and bills (19%).

Smaller shares say they will spend more on clothing and fashion (18%), subscriptions (14%), eating or drinking out (13%), events or days out (13%), or everyday conveniences (12%).

By contrast, Australians who expect their financial situation to worsen are less likely to plan spending increases. Around one in five say they will spend more on groceries (21%), while 14% say the same for holidays and housing and bills. Across most other categories, fewer than one in ten say they expect to increase spending.

More than half (54%) of those who expect their finances to worsen say they will not spend more in any area this year, compared with 29% among those who expect their finances to improve.

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Methodology: YouGov Surveys: Serviced provides quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online between February 12-16, 2026, with a nationally representative sample of (insert sample size) 1,015 adults (aged 18+ years) in Australia, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, and region to be representative of all adults in Australia (18 years or older) and reflect the latest Australian Bureau of Statistics (ABS) population estimates.  

Image: Getty Images

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