November’s jobs report exceeds expectations. FOX Business’ Edward Lawrence with more.
As the new year approaches, more and more Americans have a brighter outlook for the state of their personal finances in 2025, a recent survey shows.
Bankrate said Thursday its survey showed 44% of U.S. adults expect their financial situation to get “somewhat” or “significantly better” next year, an increase of 7 percentage points from about the same time last year.
The survey, conducted by YouGov on behalf of the personal finance site, took place from Nov. 6, the day after the 2024 election, through Nov. 8, and involved nearly 2,500 U.S. adults.
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Less inflation was the most common cause of the rosy outlook; according to the data, 36% of Americans point this out.
Close-up of a young woman doing her bills in the kitchen (iStock / iStock)
The US saw inflation, as measured by the consumer price index, rise by 0.3% month-on-month and 2.7% year-on-year in November, the government reported.
Other factors played a role in the positive financial expectations for 2025, the survey found.
For example, more than a third of Americans who expect to see better personal finances by 2025 reported that “rising incomes” would help shape their positive outlook. A slightly lower share (30%) pointed to ‘less debt’, while ‘the work of elected representatives’ and ‘better spending habits’ also played a role in optimism at 25%.
A separate July survey from Discover Personal Loans found that 80% of Americans experienced “some degree” of anxiety related to finances.
Meanwhile, Bankrate found Thursday that 33% of Americans expect the state of their finances to remain the same as they are now next year.
Less than a quarter of Americans had bleaker expectations about their financial situation, reporting that they expected things to get “somewhat” or “significantly worse,” the Bankrate survey found.
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Inflation also carried the most weight among American adults anticipating worsening finances. That was followed by, among other things, “work done by elected representatives” mentioned by 30%, “stagnant or reduced income” mentioned by 28% and debt ownership by 20%, according to Bankrate.
“Our research shows that some Americans see elected officials as a reason why their finances might not improve (or why they will), confirming a persistent political divide. Regardless of where one falls on the political spectrum, the opportunity remains for everyone to identify and act on financial goals,” Mark Hamrick, a senior economic analyst at Bankrate, said in a statement.
Couples should get together to review finances and set budgets if they plan to be together long-term. (iStock / iStock)
About 21% of Americans have their sights set on reducing their debt in the coming year, the survey found.
AMERICANS’ HOUSEHOLD DEBT HAS BEEN RISING IN RECENT YEARS AGAINST THE CHALLENGING CONSUMER ENVIRONMENT
According to the Federal Reserve Bank of New York, as of the third quarter, U.S. households collectively had a combined debt burden of $17.94 trillion, including items like mortgages, auto loans, credit cards and student loans.
For example, Americans had $12.59 trillion in mortgage balances in the third quarter. Student loans totaled $1.61 trillion, while auto loans totaled $1.64 trillion, the New York Fed found.
