The unshakable essentials: What Aussies won’t sacrifice, despite rising costs

29 April 2025

While cost of living is still high for Australian households, a fascinating pattern of spending and economising is emerging across generations.

Australians are least likely to cut back their spending on quality food (44%), pet needs (31%), and child needs (28%), according to Great Southern Bank’s latest No Place Like Home Report

Navigating the cost of living is proving different for many households. However, according to new research from Great Southern Bank there are certain areas where Australians simply won't compromise.

For young families, children's education and healthcare remain top priorities, while for baby boomers a priority is maintaining a comfortable lifestyle and accessing quality healthcare.

These essential expenses often take precedence over other discretionary spending.

Chief Customer Officer at Great Southern Bank Rolf Stromsoe said: “Australians have shown practicality and flexibility in the way they’ve accommodated cost of living pressures.

“They’ve made some hard choices on the way. Over half of Australians [54%] have cut back on their entertainment costs, and almost two-fifths [38%] have cancelled a subscription service. The savings they are making with those economies are probably helping to pay for the things they won’t do without - the essentials and luxuries that matter most to them.”

Learning from the past to build a financially clever future

Many homeowners and aspiring home buyers wished they had done things differently.

Millennials expressed the most financial regrets, particularly around saving regularly (71%), establishing early saving habits (67%), and maintaining financial independence (61%).

Overwhelmingly, Millennials biggest financial regret was not making regular contributions to savings over time.

“The great news is that it’s never too late to make smart financial decisions,” adds Stromsoe.

“At Great Southern Bank, we provide Australians with practical tools, competitive savings products and expert tips to help save more effectively, grow wealth, and confidently take steps towards homeownership."

The ‘Clever’ wave is the latest in the Bank’s second annual No Place Like Home series, exploring long-term financial security and how sentiment shifts throughout the homeownership journey.  To learn more about the insights, read the full report.

About Great Southern Bank

For almost 80 years, we’ve been putting our customers first, and today we look after the banking needs of more than 418,000 Australians. We have changed our name from CUA to Great Southern Bank but we remain customer-owned and are firmly focused on our purpose of helping all Australians to own their own home.