As the new year approaches, a recent survey shows that a growing number of Americans are feeling optimistic about their personal finances heading into 2025.
Bankrate released findings on Thursday indicating that 44% of American adults are anticipating “somewhat” or “significantly better” financial situations in the coming year. This marks a 7 percentage-point increase compared to this time last year.
The survey, conducted by YouGov on behalf of Bankrate, spanned from November 6 to November 8—just after the 2024 elections—and included close to 2,500 participants.
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Inflation was identified as the primary factor contributing to this positive outlook, with 36% of respondents attributing their optimism to decreased inflation rates.
According to the latest data, inflation, as determined by the Consumer Price Index, rose 0.3% month-over-month and 2.7% year-over-year in November.
The survey also revealed other factors contributing to financial optimism for 2025. Over one-third of respondents anticipating improved financial conditions cited “rising income” as a positive factor. A smaller percentage, 30%, mentioned “having less debt,” while 25% attributed their optimism to “work done by elected representatives” and “better spending habits.”
A previous survey conducted by Discover Personal Loans in July found that 80% of Americans reported experiencing some level of financial anxiety.
Additionally, Bankrate’s findings revealed that 33% of Americans expect their financial situations to stay unchanged next year.
While nearly 25% of Americans express more pessimistic views regarding their financial futures, suggesting things may become “somewhat” or “significantly worse,” Bankrate’s data indicates that inflation remains a significant concern for those anticipating negative outcomes.
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Other factors influencing these darker financial expectations include “work done by elected representatives,” cited by 30%, along with “stagnant or reduced income” at 28%, and debt-related concerns, which 20% of respondents pointed out.
“Our survey demonstrates that post-election, many Americans view elected officials as either a reason for their financial troubles or a potential source of improvement, reflecting a persistent political divide. Regardless of political affiliation, everyone has the chance to set financial goals and pursue them,” said Mark Hamrick, a senior economic analyst at Bankrate.
Aiming for financial recovery, around 21% of Americans indicated they plan to prioritize debt reduction in the upcoming year.
AMERICANS’ HOUSEHOLD DEBT SURGED IN RECENT YEARS AMID CHALLENGING CONSUMER ENVIRONMENT
As of the third quarter, total household debt in the United States reached $17.94 trillion, covering various forms of credit, including mortgages, auto loans, credit cards, and student loans, according to data from the Federal Reserve Bank of New York.
Among these figures, mortgage balances stood at $12.59 trillion, while student loans accounted for $1.61 trillion, and auto loans totaled $1.64 trillion, as reported by the New York Fed.
