AUSSIES ARE STILL FEELING THE COST-OF-LIVING CRUNCH, BUT MANY ARE SAVING WITH PURPOSE

Brian Westlake
54 minutes ago
2 min read

Couple on a bed in a cozy bedroom, smiling at a phone while holding mugs, with red pillows and winter decor by the window. — Focusing on what they can control rather than waiting for economic conditions to improve

Australians are still under significant financial pressure, but new research suggests many are responding not with panic, but with a more focused and adaptable approach to money.

New findings from ING Australia reveal 83 per cent of Australians still view the cost of living as a major issue, yet almost two-thirds remain optimistic about the year ahead.

The research points to a growing shift in how Australians, particularly younger generations, think about saving, spending, and financial progress.

Australians are focusing on small financial wins

According to ING’s Sense of Us 2026 report, saving money remains the number one financial goal for Australians this year, ahead of travel, investing and career changes.

Melanie Evans said Australians are increasingly focusing on what they can control rather than waiting for economic conditions to improve.

“Australians are undeniably under pressure, but what’s striking is how people are responding by focusing on small wins, building savings where they can, and taking back a sense of control,” she said.

The report found that younger Australians are leading this shift in mindset, with Gen Z recording the highest levels of optimism about the year ahead.

Younger Australians are redefining financial goals

Rather than focusing solely on traditional milestones like property ownership, many younger Australians are saving for a broader range of goals, including travel, education, personal development, and lifestyle flexibility.

The research found 71 per cent of Gen Z respondents are currently saving for something specific, while millennials are increasingly focused on family-related goals such as children’s education and home deposits.

Matt Bowen said financial confidence is increasingly being shaped by everyday habits rather than broader economic conditions.

“What this points to is a potential shift in how Australians are defining progress,” he said.

“It’s less about the big financial milestones and more about consistency, control and feeling on track in everyday moments.”

Two people chatting and smiling over coffee outside Salt Coffee Roasters.

Australians are becoming more deliberate with money

The report suggests Australians are becoming more active and intentional in how they manage their money, particularly as cost pressures continue to reshape household budgets.

Rather than abandoning spending altogether, many appear to be trying to strike a balance between saving responsibly and still enjoying parts of life that matter to them.

Which, frankly, may be the most Australian financial strategy imaginable: cutting back on takeaways while still trying to justify one holiday and a decent coffee machine.