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A new report from Fidelity Investments found the vast majority of Americans who scheme on making a financial resolution for 2024 are shifting their goals due to financial pressures.
Fidelity’s 2024 New Year’s Resolutions investigate, released on Thursday, showed two-thirds of Americans scheme on making a financial resolution for the year ahead, and of those, 92% said they are adjusting their goals based on the economic conditions over the past few years.
More than 90% of Americans who scheme on making a financial resolution for the new year say they are thinking differently about their approach for 2024. (iStock / iStock)
The top concern cited by respondents was inflation, with 40% saying they are worried about the impact of high prices on day-to-day expenses. The No. 2 concern was unexpected expenses (37%), followed by economic uncertainty (33%) and not saving enough in an emergency fund (25%).
The Labor Department’s consumer price index showed prices climbed 3.2% on an annual basis in October. While inflation has come down from its 9.1% peak in July 2022, the past few years of high inflation has taken a toll on consumers. Compared with January 2021, shortly before the inflation crisis began, prices remain up a staggering 17.62%.
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The high cost of living has put significant pressure on household finances and contributed to more Americans dipping into their savings or turning to credit cards to cover everyday expenses.
A shopper makes their way through a grocery store on July 12, 2023 in Miami. Inflation has pushed prices up 17.62% since January 2021. (Photo by Joe Raedle/Getty Images / Getty Images)
More than half (54%) of those surveyed told Fidelity they feel overwhelmed by their personal finances, and 31% said they have a stressful relationship with money. More than 2-in-5 respondents who experienced financial setbacks this year admitted to dipping into their emergency savings, and 40% of all respondents said they expect continued financial struggles in 2024 due to higher cost of living.
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“With the number of Americans tapping into their emergency savings after a year of financial stressors and setbacks, it’s not surprising to see them look forward to new, brighter chapters in 2024,” said Kelly Lannan, senior vice president of Emerging Customers at Fidelity Investments.
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“Encouragingly, it’s great to see so many taking a practical and confident outlook for the year ahead while they steer choppy financial waters and fine-tune their financial wellness habits and savings goals,” Lannan added.
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The most common resolutions for Americans for 2024 are consistent with years past in the 15-year investigate. The top goal cited for the year ahead was to save more money (41%), followed by paying down debt (38%) and spending less money (30%).
FOX Business’ Megan Henney contributed to this report.
