Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 61
Economic uncertainty can
arrive in many forms.
Interest rates change,
everyday costs rise,
industries restructure and
unexpected expenses rarely
wait for a convenient time.
Although no
household can
prepare for every
possibility, 昀椀nancial
resilience can make
disruption easier
to manage. It is
the ability to meet
regular commitments,
respond to an
unexpected cost and
adjust when income
or circumstances
change.
It is not determined
by wealth alone.
Financial resilience is
built through greater
visibility, manageable
commitments,
accessible savings
and knowing where
to seek assistance
before a temporary
setback becomes a
昀椀nancial crisis.
Australian households
have navigated
several years of
pressure from higher
living costs and
changing interest
rates. In the 12
months to the March
quarter of 2026,
the Consumer Price
Index rose by 4.1%,
meaning prices
continued to increase
across the economy.
Household spending
on essential goods
and services also
grew by 0.8% during
the quarter, compared
with 0.1% growth
in discretionary
spending.
There are signs
that the position of
many households
has improved. The
Reserve Bank of
Australia reported
in March 2026 that
cash 昀氀ow pressures
had eased compared
with mid 2024.
The proportion of
mortgage holders
experiencing severe
昀椀nancial stress had
declined, while loan
arrears remained low.
That does not mean
the pressure has
disappeared. The
Reserve Bank of
Australia (RBA) noted
that some households
continue to face
budget dif昀椀culties,
particularly when
mortgage payments
and essential expenses
consume a large share
of income.
Meanwhile,
Australia’s household
saving to income
ratio fell from 7% to
6.2% in the March
quarter of 2026.
This suggests that
households were
saving a smaller
proportion of their
disposable income as
spending grew faster
than income.
In this environment,
昀椀nancial resilience is
less about predicting
what will happen
next and more about
creating room to
respond.
