New Survey Reveals Shift in Americans' Approach to Financial New Year's Resolutions
As the New Year looms, Americans are faced with a familiar yet troubling trend—a growing disconnect from financial New Year's resolutions. According to a new national survey conducted by Beyond Finance, an overwhelming 83% of U.S. adults reported slipping on their financial goals in the past year, with only 19% managing to stick to their resolutions. This trend highlights a critical pattern of early-year burnout that is becoming increasingly common as people struggle to maintain their financial ambitions.
Despite this apparent lack of commitment, the desire to improve financial habits remains strong, with nearly half of respondents either having made or planning to make financial resolutions for the upcoming year. This striking contrast reveals a gap between intention and actual follow-through, contributing to a growing skepticism around the effectiveness of traditional New Year’s resolutions. Only 45% of participants felt that these resolutions genuinely improve their financial management and overall well-being.
Dr. Erika Rasure, the chief financial wellness advisor at Beyond Finance, suggests that the root of this problem lies in people’s approach to the goals themselves. "Often, financial aspirations fail because they aren't aligned with personal values from the start," she explains. "January may present itself as a reset opportunity, yet many Americans have lost faith that these resolutions lead to tangible financial changes. Instead of discarding these goals, it’s crucial to reflect on the underlying values that drive one's attitude toward finance. Finding ways to enhance money management rooted in those values can lead to more successful outcomes."
The survey elucidates some key insights regarding financial priorities among Americans. Respondents highlighted the following three major goals:
1. Paying down debt (43%)
2. Building an emergency fund (14%)
3. Reducing spending or sticking to a budget (9%)
This data indicates a clear focus on stability and control in financial matters. While the frustration of unmet resolutions is palpable, the commitment to improving one’s financial footing remains strong.
The influence of early financial education cannot be understated, as findings show that habits formed during childhood significantly impact adult financial behaviors. Nearly 35% of respondents attributed their money management skills to early encouragement from parents to save or budget. Additionally, 32% recognized the importance of observing responsible financial behavior from family members, while 29% indicated learning through the concept of receiving an allowance.
Furthermore, the survey emphasizes learning to save as a particularly enduring lesson, with almost 45% asserting that early habits still influence their current financial strategies. Parents and family were identified as the leading influences on core money values, followed by religious institutions and individual beliefs.
A particularly concerning aspect of the survey reveals a crisis of self-trust when it comes to financial decision-making. Approximately 50% of participants expressed only a moderate level of trust in their ability to navigate financial choices. This lack of confidence is reflected in the fact that over a quarter of respondents reported difficulty in trusting themselves with a credit card. This point underscores a deeper issue of financial anxiety, stemming from fears of making mistakes or feeling a loss of control.
Today’s economic landscape adds an emotional weight to financial decision-making, as highlighted by 59% of respondents identifying rising prices as their greatest financial stressor, followed by debt (40%) and unexpected expenses (39%). This landscape reflects an alarming trend where financial concerns contribute negatively to mental health, aligning with findings that suggest money stress has moved from being episodic to a persistent part of daily life.
Dr. Erika Rasure elaborates on this issue, stating, "Financial choices often feel fraught with risk instead of empowerment. The survey's findings reveal a network of distrust affecting not only individual decision-making but also relationships with financial institutions and even personal connections. This dynamic further compounds financial stress, creating an isolating experience."
On the brink of January, a transformative approach is warranted. Traditionally, New Year’s resolutions revolve around numeric goals and strict budgets, but Dr. Rasure emphasizes the significance of starting with self-awareness over self-judgment. Consumers should focus on understanding where their financial values originate and then establish supportive goals that truly resonate with their personal beliefs.
“In January, it's essential to recognize that this time of year shouldn’t be viewed as a singular starting point for financial goals. Progress emerges when goals are periodically revisited, grounded in a mindset of learning rather than self-condemnation. Individuals can enhance their likelihood of success by aligning their financial goals with their core values,” concludes Dr. Rasure.
To aid individuals in unearthing the values that matter most, Dr. Rasure offers practical suggestions drawn from her coaching sessions:
Since its inception in 2011, Beyond Finance has empowered over 1 million individuals, collectively eliminating more than $3 billion in debt. By providing tailored debt consolidation plans, complimentary financial therapy sessions, and innovative tools, Beyond Finance equips clients to embark on a path toward healing their financial habits and achieving lasting freedom from debt. Full survey findings can be requested for more detailed insights.
Despite this apparent lack of commitment, the desire to improve financial habits remains strong, with nearly half of respondents either having made or planning to make financial resolutions for the upcoming year. This striking contrast reveals a gap between intention and actual follow-through, contributing to a growing skepticism around the effectiveness of traditional New Year’s resolutions. Only 45% of participants felt that these resolutions genuinely improve their financial management and overall well-being.
Dr. Erika Rasure, the chief financial wellness advisor at Beyond Finance, suggests that the root of this problem lies in people’s approach to the goals themselves. "Often, financial aspirations fail because they aren't aligned with personal values from the start," she explains. "January may present itself as a reset opportunity, yet many Americans have lost faith that these resolutions lead to tangible financial changes. Instead of discarding these goals, it’s crucial to reflect on the underlying values that drive one's attitude toward finance. Finding ways to enhance money management rooted in those values can lead to more successful outcomes."
Survey Insights on Financial Priorities
The survey elucidates some key insights regarding financial priorities among Americans. Respondents highlighted the following three major goals:
1. Paying down debt (43%)
2. Building an emergency fund (14%)
3. Reducing spending or sticking to a budget (9%)
This data indicates a clear focus on stability and control in financial matters. While the frustration of unmet resolutions is palpable, the commitment to improving one’s financial footing remains strong.
The Impact of Early Financial Education
The influence of early financial education cannot be understated, as findings show that habits formed during childhood significantly impact adult financial behaviors. Nearly 35% of respondents attributed their money management skills to early encouragement from parents to save or budget. Additionally, 32% recognized the importance of observing responsible financial behavior from family members, while 29% indicated learning through the concept of receiving an allowance.
Furthermore, the survey emphasizes learning to save as a particularly enduring lesson, with almost 45% asserting that early habits still influence their current financial strategies. Parents and family were identified as the leading influences on core money values, followed by religious institutions and individual beliefs.
Self-Trust in Financial Decision-Making
A particularly concerning aspect of the survey reveals a crisis of self-trust when it comes to financial decision-making. Approximately 50% of participants expressed only a moderate level of trust in their ability to navigate financial choices. This lack of confidence is reflected in the fact that over a quarter of respondents reported difficulty in trusting themselves with a credit card. This point underscores a deeper issue of financial anxiety, stemming from fears of making mistakes or feeling a loss of control.
Economic Pressures Amplifying Financial Stress
Today’s economic landscape adds an emotional weight to financial decision-making, as highlighted by 59% of respondents identifying rising prices as their greatest financial stressor, followed by debt (40%) and unexpected expenses (39%). This landscape reflects an alarming trend where financial concerns contribute negatively to mental health, aligning with findings that suggest money stress has moved from being episodic to a persistent part of daily life.
Dr. Erika Rasure elaborates on this issue, stating, "Financial choices often feel fraught with risk instead of empowerment. The survey's findings reveal a network of distrust affecting not only individual decision-making but also relationships with financial institutions and even personal connections. This dynamic further compounds financial stress, creating an isolating experience."
Reevaluating New Year’s Financial Resolutions
On the brink of January, a transformative approach is warranted. Traditionally, New Year’s resolutions revolve around numeric goals and strict budgets, but Dr. Rasure emphasizes the significance of starting with self-awareness over self-judgment. Consumers should focus on understanding where their financial values originate and then establish supportive goals that truly resonate with their personal beliefs.
“In January, it's essential to recognize that this time of year shouldn’t be viewed as a singular starting point for financial goals. Progress emerges when goals are periodically revisited, grounded in a mindset of learning rather than self-condemnation. Individuals can enhance their likelihood of success by aligning their financial goals with their core values,” concludes Dr. Rasure.
To aid individuals in unearthing the values that matter most, Dr. Rasure offers practical suggestions drawn from her coaching sessions:
- - Reflect on early teachings about money: Consider what financial beliefs were instilled during childhood and how they affect current habits.
- - Assess current values: Evaluate whether past lessons align with present-day values and pinpoint what is crucial right now.
- - Embrace change: If childhood beliefs no longer resonate, it’s perfectly okay to recalibrate those values to align with one’s true self. Though this may require time and introspection, making authentic choices can alleviate guilt and relieve stress.
Since its inception in 2011, Beyond Finance has empowered over 1 million individuals, collectively eliminating more than $3 billion in debt. By providing tailored debt consolidation plans, complimentary financial therapy sessions, and innovative tools, Beyond Finance equips clients to embark on a path toward healing their financial habits and achieving lasting freedom from debt. Full survey findings can be requested for more detailed insights.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.