What’s your main challenge?
"As a single dad co-parenting my son, Freddie, I’ve really noticed the creeping cost of groceries and the sudden jumps in petrol. You go to the supermarket and you’re dropping 50 or 60 bucks but the bags just have less in them than they used to. Petrol is another massive hit; filling up just a quarter of my tank recently cost me more than $60. It makes you second-guess basic weekend plans. We’re driving down to Canberra to see my parents this weekend and it’s going to be a significant expense.
"We had a loose plan for a family trip to Bali in August but right now, we’re conscious that affording the flights and incidentals might just be out of reach. There’s also housing stress. Our real estate agent agreed to keep our rent level for another year, which is very lucky in this market, but seeing three-bedroom places going for $1300 a week keeps me mindful of the future."
How have you adapted?
"My overall philosophy around money these days is ‘restraint’. In my twenties, I was a bit reckless but now every single expenditure is a trade-off. I’d rather give Fred a good life and sacrifice things for myself so I’m highly conscious of where every dollar goes. There’s almost a fear around spending money right now because you just don’t know what world event is going to drive prices up next so you need a safety net.
"Day-to-day, we’re definitely eating out a lot less. Fred is in day care five days a week, which means he eats a lot of his meals there Monday to Friday but it can be expensive just to leave the house on weekends. Instead of going out, we now do a lot of grazing nights at home. We just get out what we already have and make a spread. It stretches food further and it’s fun."
Money-saving tip
"Give yourself a daily budget. I set a strict weekly budget that is tight but enough to get by on then I divide that number by seven. It tells me exactly how much I have to play with each day. If I go over my limit on Tuesday, I know I have to be more cautious on Wednesday. But if I don’t go over, I have a little more money to play with later in the week. It stops you from spending frivolously because you know exactly what your limit is."
Making sense of the economy
We asked CommBank economist Ashwin Clarke the big questions to help you navigate the noise and make your money work harder.
1. It felt like we were turning a corner… so why does it feel like the “squeeze” is back?
Last year, developments were positive for households but strong spending and an uplift in business investment meant the economy was breaching its speed limit, with inflation ticking up in 2026. The RBA started increasing interest rates in February 2026 in response and then the Iran war started in March and fuel prices increased sharply – adding to the pressures households are facing.
2. We hear a lot about the economy’s “speed limit”. What does that mean for my weekly shop?
When the economy is growing above its speed limit, demand is increasing by more than businesses can supply so many increase their prices. This drives up cost-of-living pressures for many consumers, which means their weekly shop becomes more expensive.
3. Are these price hikes across the board or are there specific areas where we should be extra careful with our spending?
The increase in inflation we’ve seen in recent months has been relatively broad-based but annually, inflation has been highest in transport. It’s also been very high in clothing, footwear and housing. But we’ve also seen elevated inflation in a range of other categories. In this environment, consumers need to think about what’s most important in what they consume.
4. For those of us trying to save or pay off a mortgage, what’s the silver lining in the current outlook?
One thing that’s solid in the economy is the labour market and for most working-age people, a job is the most important thing to keep their finances sound. We also know that many households have solid financial buffers; late-2025 ABS data suggests people are saving more income than prior to the pandemic. This includes home-loan holders, who are putting funds in offset and redraw accounts.
5. If someone has a tax return or a small bonus right now, what are some things to consider when deciding how to spend that money?
Every individual has their own unique circumstances and I think it’s really important to make sure they have a good sense of their budget and financial goals. For example, mortgage holders generally have the option of paying down their loan earlier. Being intentional and reflective about what your circumstances are is really important.
