Hope for 2025: 44% of Americans Expect Financial Gains Ahead!
As the shadows of pandemic price surges and the so-called “vibecession” begin to lift, more Americans are feeling a renewed sense of optimism about their financial futures.
According to the latest Financial Outlook Survey, an impressive 44 percent of Americans believe their finances will improve by 2025, a notable increase from the 37 percent who felt similarly last year regarding 2024. The contrast is even more striking when looking back to 2022, where just 34 percent were hopeful for 2023, and only 21 percent back in 2021 were optimistic about their 2022 finances.
So, what’s fueling this newfound hope? For many, it’s the easing of inflation fears. A significant 36 percent of those optimistic about their financial outlook attribute their positivity to lower inflation levels—up a remarkable 17 percentage points from the previous year. Conversely, among the skeptics, 44 percent still cite ongoing high inflation as their main concern, though that’s a decrease from 61 percent last year.
Inflation, which recently peaked at a 41-year record high in 2022, is showing signs of stabilizing. The latest report from the Bureau of Labor Statistics indicates that inflation in November stood at 2.7 percent—just a slight uptick from the previous month but in line with expert forecasts.
Key Insights from the Financial Outlook
While inflation may be less of a burden now, it remains a concern for many Americans who see it as a leading challenge to their finances. With interest rates still on the higher side, it’s heartening to see that the primary financial goal for many is to tackle debt.— Economic Analyst
A Brightening Outlook for 2025
Americans are increasingly optimistic as they set their sights on 2025. The survey reveals that nearly half—44 percent—anticipate an improvement in their finances, a rise from just 37 percent last year for the outlook on 2024. This positive trend is echoed across various demographics, with different age groups expressing varying degrees of optimism.
However, it’s not all sunshine; about 33 percent expect their financial situation to remain stable, while 23 percent foresee a downturn, including 10 percent who are particularly pessimistic about a significant decline.
Source: Financial Outlook Survey, Nov. 6-8, 2024
When we break it down by generation:
- 55 percent of Gen Z (ages 18-27) are hopeful
- 49 percent of millennials (ages 28-43) share this sentiment
- 38 percent of Gen X (ages 44-59) feel positive
- 37 percent of baby boomers (ages 60-78) expect improvement
On the flip side, those bracing for a financial dip include:
- 27 percent of Gen X
- 25 percent of baby boomers
- 22 percent of millennials
- 17 percent of Gen Z
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See moreInflation: A Lingering Challenge
While inflation may not be as fierce as in recent years, it remains a significant concern for many. Prices are still on the rise—just at a slower pace. From groceries to rent, the impact of inflation is felt daily, and wages are struggling to keep pace. According to recent findings, full recovery from inflation won’t be realized until at least mid-2025.
Among those who predict stagnation in their financial situation, 44 percent cite high inflation as a key factor, down from 61 percent a year ago. Other cited concerns include lack of governmental support (30 percent), stagnant incomes (28 percent), and personal debt (20 percent).
Source: Financial Outlook Survey, Nov. 6-8, 2024
Note: Percentages reflect U.S. adults unsure about improvements in their personal finances for 2025.
On a more hopeful note, those optimistic about their financial trajectory attribute their confidence to declining inflation (36 percent) and other factors like rising income (35 percent), reduced debt levels (30 percent), and improved spending habits (25 percent).
Source: Financial Outlook Survey, Nov. 6-8, 2024
Note: Percentages reflect U.S. adults expecting financial improvements in 2025.
Additionally, 25 percent of those expecting better finances credit the efforts of elected officials. This reflects an ongoing political divide, yet the message is clear: regardless of political beliefs, setting and pursuing financial goals is essential.
“Political climates come and go, but our commitment to our financial health is ever-present,” says a senior economic analyst.
Debt Reduction Takes Center Stage
Looking ahead, the most common financial goal for 2025 is tackling debt, cited by 21 percent of respondents—and the urgency grows with age:
- 9 percent of Gen Z
- 20 percent of millennials
- 26 percent of Gen X
- 25 percent of baby boomers
It’s no secret that carrying credit card debt can be a heavy burden. Reports indicate that over half of Americans now carry a credit card balance month-to-month, a jump from 44 percent earlier this year—marking the highest level since March 2020.
“With average credit card interest rates hovering above 20 percent, targeting high-interest debt can yield immediate gains,” the analyst notes.
Source: Financial Outlook Survey, Nov. 6-8, 2024
*(e.g., vacation, home renovation, big-ticket items, etc.)
Other prevalent financial goals for the upcoming year include boosting emergency savings (12 percent), seeking better-paying jobs or additional income streams (11 percent), and improving budgeting skills (10 percent).
Interestingly, about 1 in 10 Americans (11 percent) report having no financial goals for 2025, with baby boomers leading this trend:
- Gen Z: 6 percent
- Millennials: 10 percent
- Gen X: 9 percent
- Baby boomers: 16 percent
Setting Priorities for Financial Goals
Among those who have identified financial goals for 2025, a significant 43 percent plan to tackle them right away as part of their New Year’s resolutions.
Meanwhile, 35 percent view their goals as medium-term issues to ponder, and 13 percent see their goals as long-term endeavors needing more research and reflection.
Interestingly, 10 percent of Americans are uncertain about how to approach their goals in the upcoming year.
Source: Financial Outlook Survey, Nov. 6-8, 2024
Note: Percentages reflect U.S. adults with financial goals for 2025.
Wrapping It Up
In recent years, there’s been a noticeable disconnect between the economy’s performance and how Americans feel about their financial status. Despite the economy avoiding recession, the inflationary pressures easing, and steady job growth, many are still uneasy. Yet, this latest survey hints at a potential shift in perception—Americans are beginning to feel more confident about their financial landscape in 2025.
To navigate whatever uncertainties lie ahead, financial experts stress the importance of “future-proofing” your finances. The start of the New Year is an ideal time to take stock of your financial health, set clear goals, and develop a comprehensive financial plan. Regularly reviewing your progress against your goals can make all the difference on the path to financial success.
“Having a financial goal is one thing; taking action to achieve it is another,” the analyst advises. “Once the New Year has settled in, consider scheduling monthly or quarterly check-ins to monitor your trajectory. Small adjustments can lead to significant outcomes, especially when it comes to finances.”
