The impact of Australia’s cost-of-living crisis has forced countless Australian families to contend with financial pressures that are undermining their security and survival. Catherine and Bob, the parents of two young children, are in for an uphill battle. Bob’s unemployment has put an enormous stress on their ability to care for the household. The couple’s struggles reflect a growing crisis trend. According to a recent survey, almost half of the Australian community is experiencing negative mental health effects as a result of the increasing cost-of-living.
Catherine and Bob’s story is an example of the sad truth that most of America’s families endure. Now facing rising costs, the couple is under increased pressure, which has led to damaging their finances and increasing tension in their marriage. In their son’s case, the choice to have him sleep in the lounge room came entirely from the family’s financial situation. This decision acknowledges the debt we owe them for those sacrifices.
A 2025 Compare the Market survey found some shocking responses. It was alarming that 48.7% of Australians reported that cost-of-living pressures have increased their anxiety and depression. Additionally, the survey brought to light that these pressures are taking a toll on all areas of life—including health, sleep quality, and relationships.
It was Catherine and Bob’s turn to be in the hot seat. She tearfully had to make the decision to euthanize her cat after learning that the cost to treat its diabetes would be $4,000. This decision represents the heartbreaking, but all-too-common, choices families must make as their financial resources dry up.
Their middle teenage daughter has suffered physical and psychological impacts due to the family’s financial burden. “She worries a lot. First thing she’ll ask is, how much money do we have? Can I see your bank statement?” Catherine explained. The young couple works hard to shield their children from the stresses of having to worry about money. Yet they understand that these worries unavoidably impact their children.
She and her children are being crushed by rising costs, making the reality of raising children all the more painful. As per the Australian Multiple Birth Association, it costs about five times more to raise twins as compared to single children. Laura and Mitch, another couple struggling with the same issues, chose to move in with Laura’s mom. The reason they decided to reduce their costs after welcoming their twins earth side.
“We would love to be having psychology sessions for our mental health, GP visits, and dentistry but we’ve had to scale back on that and prioritize our kids’ health,” Laura shared. Laura’s decision to freeze her eggs was driven largely by financial issues. This ruling sheds light on the ways that economic burdens can shape the decision to move.
Mental health professionals are equally feeling the cost-of-living crisis’s impact on their practices. Ornella Moutou, a psychologist who specializes in fertility issues, has seen her clientele disappear overnight. Now, more Americans are choosing to forego mental health treatment in favor of saving money. “Mental health should not be considered a luxury item; it’s your health at the end of the day,” she stated.
Here, Ornella highlighted the need for self-care practices such as regular physical activity and maintaining social connections. She recognized that financial insecurity pushes young women away from pursuing these activities as careers. “It’s very hard to tell people to do them when they’ve got absolutely no time to do them, or they don’t have the economic means to do those things,” she said.
The wider impacts of financial strain go beyond just the hurting families. Kate Lycett, a researcher in economic and mental well-being, cuts to the heart of it. When people’s most important needs are unaddressed, people often experience low well-being. “If you don’t have money or time to do the things that give you a sense of purpose, that will knock our levels of well-being,” she stated.
As families like Catherine and Bob’s continue to fight the good fight against unsustainable rent increases, they are immediately caught in the rut of just surviving. “It’s hard to plan for your future when you are just surviving day to day,” Catherine reflected.
Due to this continuing crisis many Australians have had to put off and even completely give up on seeking mental health care. Yet just yesterday, the National Mental Health Commission painted a deeply disturbing picture. More than one in five Australians has put off visiting a mental health professional due to their cost.
Moutou is on a quest to widen access to her services. She deeply discounts clients, sometimes some 80% below the recommended fee guidelines promulgated by the Australian Psychological Society. She now argues for the policy changes that would develop more robust support systems for families experiencing these grinding economic pressures. “So, whilst there is some individual responsibility, we need the right policy environments to try, and those people can thrive and have those opportunities,” she stated.
The cost-of-living crisis continues to move the goalposts. Its effect on mental health, productivity and community has recently sparked concern amongst Australians. Families are forced to navigate heartbreakingly tough choices as they look for long-term solutions to increasingly high costs.
