Rising costs drive demand for budget advice in Switzerland

Rising health insurance premiums, fuel prices and rents are putting pressure on household budgets in Switzerland, prompting more people to seek advice, Philipp Frei, head of Budgetberatung Schweiz, told SRF.

The umbrella association brings together 30 independent advice centres that provide information, counselling and training on personal budgeting. Frei said more people who had previously managed their finances are now finding it difficult to make ends meet. The pressure affects people across income groups, he said, depending on how much they have left after monthly expenses.

Frei recommends first reviewing spending that can be changed quickly, such as eating out, holidays and shopping habits. Checking where and how often one shops, or how often one buys meat, can bring immediate relief, he said. Next, people can review recurring costs such as phone, gym and other subscriptions, as well as their health insurance plan.

The cheapest health insurance option is not necessarily the best, Frei cautioned. Someone choosing a high deductible, for example 2,500 francs, needs to have that amount available. The option can also cost more overall for someone who often needs to see a doctor.

Frei warned against cutting costs in ways that could lead to higher expenses later, particularly by delaying medical care. Financial worries can also affect mental health, he said, noting that anxiety about unexpected bills can weigh heavily on people.

Budget advisers can help people review their income and expenses and allocate available money, Frei said. They cannot make more money available, but can help identify when a budget is heading in the wrong direction.