2025 Money Makeover: How Americans Are Revolutionizing Their Finances

As we gear up for 2025, a striking revelation emerges: a significant portion of Americans are ready to transform their financial habits!

A survey of 2,000 people reveals that a whopping 42% anticipate suffering from a “holiday hangover” this year, feeling the pinch of post-holiday spending.

In response, nearly half of Americans—49%—are planning to retreat into a state of hibernation this January. They’re looking to dial back their social activities and reign in their spending after the festive season.

Conducted by a global savings platform, the study highlights that a remarkable 65% of respondents aspire to elevate their financial habits in 2025. Even more inspiring, over a quarter—26%—are eager to boost their financial literacy in the New Year.

However, the quest for financial know-how isn’t without its hurdles. Shockingly, more than one in four participants—26%—aren’t aware of the interest rate their bank is offering them.

When quizzed on basic financial terms, 59% didn’t know what APR (annual percentage rate) stands for, while a staggering 78% were puzzled by APY (annual percentage yield), and 79% couldn’t identify ROI as “return on investment.”

Reflecting on the past year, over half of those surveyed—54%—felt that 2024 “got away” from them.

Moreover, a staggering 89% didn’t achieve all they had hoped for in 2024.

The most common unfulfilled resolutions include not saving enough money (51%), failing to maintain fitness (38%), not traveling (32%), and not being mindful with their spending (31%).

Looking ahead, 55% are embracing a “slow living” philosophy in 2025, with respondents planning to reduce their lifestyles by an average of 33%!

In a surprising twist, 44% of Americans are committing to Dry January and another 44% are embarking on a “no buy” challenge—only spending on necessities in January.

“Improving your finances begins with enhancing your financial literacy,” emphasized the CEO of the savings platform. “Don’t hesitate to seek help; finance can be daunting, but you’re not alone! Lean on trusted family, friends, or financial experts.”

Slowing down may not only relieve stress but also save dollars. Respondents who plan to take a break from social media in 2025 (37%) believe they could save an impressive average of $5,366!

Those opting to pause dating (29%) estimate savings of $3,961, while 31% plan to ditch new health trends and project an average savings of $3,900!

“This research highlights how quickly expenses can accumulate when we don’t consciously budget,” concluded the CEO. “Having a solid financial plan is crucial. It allows you to spend intentionally on what brings joy while striving for financial security.”

Survey methodology:

2,000 Americans were surveyed online, with the research conducted between November 26 and December 2, 2024.