FROM FRAGILE TO IN-CONTROL, YOUI RESEARCH REVEALS AUSSIES CHOOSE FINANCIAL FITNESS AMID PRICE HIKES

SIPPY DOWNS, Australia, Feb. 23, 2026 /PRNewswire/ -- As Australians head into the new year determined to get on top of their finances, new research* has revealed just how fragile many household budgets have become, particularly during times of inflation and interest rate hikes. 

According to a new survey conducted by Australian insurance provider Youi, more than 2 in 5 (42%) Australians say their financial situation has worsened in the past two years –two thirds (66%) admit they are only just scraping by, struggling with debt, and would struggle if hit with an unexpected cost.

The findings show cost-of-living pressures are biting hard, with 62% feeling the squeeze daily or most days and that financial stress has negatively affected their mental (34%) or physical health (26%). 

Despite the pressure, the data reveals a shift in mindset. Nearly one third of Aussies (30%) say their finances have actually improved, largely due to tighter budgeting and cutting back on non-essentials like dining out and entertainment. 

But significant pain points remain. Monthly bills (47%), grocery costs (44%), and the growing need to dip into savings (31%) are the top financial stresses continuing to drag Australians down.    

To help alleviate the pressure, Youi has launched the 'Youi Financial Fitness Calculator', designed to help Australians build their financial knowledge and track their spending during challenging times.

The pressures behind the squeeze

Youi's research shows financial stress is being driven largely by rising everyday expenses rather than discretionary spending. 91% cite increased costs for essentials such as groceries and fuel as a key contributor to financial stress, followed by unexpected bills (58%) and higher household costs like childcare (37%). The findings reflect a broader economic trend with the latest ABS Consumer Pricing Index, showing housing (+5.5%), food (+3.4%), and recreation (+4.4%) as the largest contributors to annual inflation**.

The financial pressure is extending beyond the hip pocket, with more than 1 in 3 reporting impacts on their sleep (35%), social life (33%), and nutrition (25%). 

The research also shows confidence in external support is fractured, reinforcing the sense that many Australians feel they are largely on their own when it comes to managing rising costs. Nearly 6 in 10 (59%) believe governments should be doing more to support households, while a third (33%) say individuals must take primary responsibility for their financial security. 

Youi Chief Customer Officer, Anthony Antonucci said Australia's intentions are clear for the year ahead – to get our finances into better shape.

"Aussies are under real pressure, but we're seeing a shift from reacting to costs to protecting what matters most," Anthony said. 

"Youi's new Financial Fitness Calculator is designed to help Aussies take the first step towards reclaiming their financial confidence and working towards their financial goals in 2026.

"Our research shows that almost 80% of Australians review their insurance spending annually, which is a great start, but far fewer, less than 40%, say they are likely to review or switch their insurance provider in the next 12 months. Many could be missing savings simply by not shopping around or comparing their options. With budget pressures impacting most households, affordability without compromising on your cover should be a priority. Take a look closely at your policy and make sure your insurance still fits your needs and budget," he said.

The changing shape of goals and trade-offs

According to the data, rising costs are reshaping long-term aspirations. The Australian dream is impacted, with almost half of respondents (46%) believing they may never be able to afford a home of their own, and a further 11% stating that home ownership won't be possible for them within the next 10 years. Only 5% feel confident that they could purchase a home in 2026.

Looking ahead, Australians' biggest financial concerns for 2026 are managing daily expenses (61%), housing costs (39%) and savings levels (36%). 

When reassessing spending, Australians are prioritising protection over convenience. Insurance (16%) and gym memberships (17%) are among the expenses that are least likely to be axed, while discretionary spending is the first area households are willing to wind back. 

From pressure to priority: what Aussies want in 2026

Of the almost one third (30%) of Aussies that say their finances improved over the past two years, almost half (44%) said they achieved this by cutting expenses and budgeting. An additional 40% did so by changing their spending habits, while 36% said they became more organised.

Looking to 2026, the top financial goals are building savings (24%), reducing expenses (20%) and increasing income (13%). 

Economic Futurist and Behavioural Economist, Evan Lucas said financial pressure is reshaping how Australians think about money and wellbeing.

"Households are under strain, but they're becoming more deliberate and vigilant with their money to protect what matters most. The key to staying on top of your money is to know where it's going – turn your reviews of fixed costs like phone, energy and internet, into a regular habit. Exercising discipline here can help identify potential areas of savings," Evan said. 

"Oftentimes people sign up for a service, and neglect to check whether there are cheaper options out there, a mistake that could be costing you. Moving away from 'set and forget' and regularly reviewing fixed costs is one of the simplest ways to build financial strength. 

"Youi's new Financial Fitness Calculator is designed to help Aussies take the first step towards reclaiming their financial confidence and working towards their financial goals in 2026, whether that's building your emergency fund or saving towards a house deposit." 

Practical steps Australians can take now, according to Evan Lucas:

1. Schedule regular reviews of bills, subscriptions, services and credit cards to avoid 'set and forget' spending.
2. Automate savings so a portion of every pay goes straight into a dedicated account.
3. Prioritise paying down debt to reduce interest costs and lower financial stress.
4. Use tools such as Youi's Financial Fitness Calculator and resources to calculate spending, identify savings opportunities and stay focused on goals.

For more information on the survey or to learn more about how to better manage your finances in 2026, visit here. 

References 

* Research conducted by Dentsu Intelligence in January 2026 with a sample size of 2,012 Australians. 

**Australian Bureau of Statistics, Consumer Price Index, released 28 January 2026, reference period December 2025. 

Disclaimer:  *Data for the Youi Financial Fitness study was sourced from a survey conducted by Dentsu Intelligence from 1 January 2026 to 15 January 2026, involving 2,012 individuals aged 18 years old and above, from all states and territories within Australia. Some percentages have been rounded to the nearest whole number. Survey results have not been independently verified by Youi and may not be representative of the general population. Youi makes no representation or warranty of any kind of the accuracy, adequacy, reliability, or completeness of the data and accepts no liability for any loss or damage of any kind suffered as a result of the use of or reliance on the data. Individual experiences may vary.  

The information provided in this Media Release contains general advice about our products only. It has been prepared without taking into account any person's particular objectives, financial situations or needs. Premiums and savings subject to rating, underwriting, and individual circumstances. Products issued by Youi Pty Ltd. You should read the relevant Product Disclosure Statement and Target Market Determination, which contains full details of conditions, limitations and exclusions and consider whether the product is appropriate to you before making any decisions about whether to buy or continue to hold a policy.

ABOUT YOUI:   

Youi Pty Ltd is an Australian registered company and is a wholly owned subsidiary of Youi Holdings Pty Ltd, a subsidiary of OUTsurance International Holdings Pty Limited. The ultimate holding company is OUTsurance Group Limited.   

Youi Pty Ltd is a registered general insurance company which underwrites its own policies. Our products currently include Vehicle insurance (Car, NSW CTP Green Slip, SA CTP, Motorcycle, Caravan and Trailer), Home insurance (Buildings and Contents), Watercraft and Small Business Insurance.   

Youi is regulated by the Australian Prudential Regulation Authority (APRA) and Australian Securities and Investment Commission (ASIC), a member of the Insurance Council of Australia (ICA) and a signatory to the General Insurance Code of Practice.

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