Australians are increasingly snacking on an unhealthy diet of debt, poor savings and no insurance coverage.

Among the most financially out of shape is Generation Y, whose reliance on credit cards and poor insurance awareness marks them in need of a financial fitness makeover.

A new survey on the state of Australians’ finances by Bankwest reveals improvements in the economy have yet to trickle down to personal spending and saving habits.

The Bankwest Financial Fitness survey says 28% of Australians have poor finances, compared with 22% classified as “financially fit”.

Generation Y, at 30%, are the worst performers, while Baby Boomers fared the best with just 15% in financial trouble.

Western Australians are in the best financial health, compared with Queenslanders, who rated the worst out of the states and territories.

“Despite the market rebound and signs we’ve shrugged off the worst of the global financial crisis, our research shows even more Australians are doing it tough and struggling to manage their finances,” spokesman Adrian Bradley told insuranceNEWS.com.au.