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).