Many Americans are making financial decisions amid budget pressures, Fidelity finds
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Many Americans are thinking of doing it financial decisions as they approach the new year with a focus on short-term savings goals, according to a new study by Fidelity Investments.
Fidelity’s annual survey found that 64% of respondents are considering a financial resolution in the new year, an increase from 56% last year.
It also found that the top three financial decisions have not changed from year to year, with 44% saying they want to do so. save more money36% want to pay off debt, and 30% want to spend less money.
“This was the second year in a row that Americans prioritized short-term money,” Leanna Devinney, market leader at Fidelity Investments, told FOX Business in an interview. “So this was like last year where they said, ‘I want short-term savings goals like building an emergency fund or paying off debt versus long-term goals.’
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More Americans are thinking about making financial decisions for next year than last year, Fidelity found. (Stock)
The survey found that 55% feel frustrated personal finance while 31% of Americans describe their relationship with money as stressful. Among the age groups, Millennials (68%) and Gen Z (64%) are the most stressed about their finances.
Americans also feel more pressured than in recent years when it comes to saving for goals after paying off debt (35%), being able to pay monthly bills (34%), paying for health care costs in retirement (30%) and having enough. retirement income retirement as planned (30%).
Fidelity found that nearly three-quarters of Americans faced a financial crisis in the past year, which could explain the focus on saving properties due to unexpected problems, and 20% reported an unexpected financial emergency.
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Respondents noted stress around having enough surplus after debt to save for their goals. (Nicolaus Czarnecki/MediaNews Group/Boston Herald via Getty Images)
“By 2025, 72% of Americans say they’ve experienced some type of financial crisis, and 55% say they’re overwhelmed by their finances,” Devinney said. “Due to rising prices, 33% of respondents feel they have too little money.”
“While those are real concerns, what we see is also optimism,” noted Devinney, adding that the survey found that 70% see themselves in trouble. better or similar financial status than they were at the same time last year.
Additionally, more respondents said they feel better about their finances than they did five years ago – with 43% saying so in this year’s survey, up from 36% last year.
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Fidelity’s survey found optimism when respondents compared their current financial situation to five years ago. (Photos by Alex Tai/SOPA/LightRocket)
“The beginning of the year got off to a strange start. We saw significant market volatility and significant market returns, as well as continued concerns about being able to compete with rising prices and, year after year, we’ve seen. strong inflation.”
“I think why in the last two years we’ve seen the importance of short-term savings is probably because of some volatility that we’ve seen, and Americans this time saying they should have dipped into some of their savings,” he said.
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Devinney said it’s encouraging that Americans are prioritizing their short-term financial goals, pointing to 25% who say they want to build their emergency fund in the next year and another 23% who say they want to stick to a spending budget.
