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As the new year approaches, more Americans have brighter outlooks on the state of their personal finances in 2025, a recent survey indicated.
Bankrate said Thursday your survey found that 44% of American adults expect to see their financial situation improve “somewhat” or “significantly” next year, an increase of 7 percentage points from about the same period last year.
The survey, conducted on behalf of the personal finance site YouGov, was conducted from Nov. 6, the day after the 2024 election, to Nov. 8 and involved nearly 2,500 American adults.
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Lower inflation was the most common factor behind the optimistic outlook, with 36% of Americans pointing to that, according to the data.
Close up of a young woman doing her bills in the kitchen (iStock/iStock)
In the United States, inflation as measured by the Consumer Price Index rose 0.3% month over month and 2.7% year over year in November, the government reported.
Other factors influenced positive financial expectations for 2025, according to the survey.
For example, more than a third of Americans who anticipate seeing better personal finances in 2025 reported that “increased income” helps guide their positive outlook. A slightly smaller percentage (30%) pointed to “having less debt,” while “the work done by elected representatives” and “better spending habits” also influenced 25%’s optimism.
A separate July survey from Discover Personal Loans reported that 80% of Americans were experiencing “some level” of anxiety stemming from finances.
Meanwhile, Bankrate found Thursday that 33% of Americans expect the state of their finances to remain where they are now next year.
Just under a quarter of Americans had more pessimistic expectations about their financial situation, reporting that they anticipated things would get “somewhat worse” or “significantly worse,” the Bankrate survey showed.
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Inflation also borne the brunt for American adults who anticipated a worsening of their finances. This was followed by “work done by elected representatives” cited by 30%, “stagnant or reduced income” cited by 28%, and debt holdings by 20%, among other factors, according to Bankrate.
“After the election, our survey finds that some Americans view elected officials as a reason why their finances might not improve (or why they will), affirming a continuing political divide. No matter where someone is in the political spectrum, the opportunity remains for everyone to identify financial goals and act accordingly,” Mark Hamrick, senior economic analyst at Bankrate, said in a statement.
Couples should meet to review finances and budget if they plan to stay together long-term. (iStock/iStock)
About 21% of Americans have their sights set on reducing their debt over the next year, according to the survey.
US HOUSEHOLD DEBT INCREASED IN RECENT YEARS AMID A CHALLENGING CONSUMER ENVIRONMENT
In the third quarter, American households collectively owed $17.94 trillion in debt, including things like mortgages, auto loans, credit cards, and student loans. according the Federal Reserve Bank of New York.
Americans had $12.59 trillion in mortgage balances in the third quarter, for example. Student loans totaled $1.61 trillion, while auto loans totaled $1.64 trillion, the New York Fed found.
