Americans Aim for Better Financial Habits in 2025
A recent survey revealed that a majority of Americans are looking to improve their financial habits in the coming year, reflecting a growing awareness of the importance of personal financial management. Conducted by Talker Research and commissioned by global savings platform Raisin, the study surveyed 2,000 adults and highlighted significant trends in financial planning and literacy.
Financial Resolutions for 2025
The survey found that 65% of respondents are hopeful about making positive changes to their money habits in 2025. Nearly half (49%) expressed intentions to “hibernate” in January by being less socially and financially active after the holiday season. This approach is seen as a strategy to recover financially from the typically expensive festivities and to start the year on a more frugal note.
One striking finding from the survey is that 44% of respondents plan to limit their spending to absolute necessities during the month of January. By doing so, many hope to regain control of their budgets and build a stronger foundation for financial success throughout the year. Additionally, 29% mentioned they would put dating or dining out on hold, estimating potential savings of over $3,000 on average.
Addressing Financial Literacy Gaps
Financial literacy remains a challenge for many Americans, as highlighted by the survey. A quarter of respondents (26%) admitted they are unaware of the interest rates they receive from their banks or financial institutions. Furthermore, when asked about financial terminology, 59% did not understand the meaning of APR (annual percentage rate), and a staggering 78% were confused by the abbreviation APY (annual percentage yield).
“Finance can be an intimidating topic,” said Cetin Duransoy, CEO of Raisin. “It’s so important to have a solid financial plan in place. That way you can be intentional and spend on what brings you joy while working towards financial security.” He emphasized the importance of seeking help when needed, whether from a trusted family member, friend, or financial expert.
Lessons from 2024
Reflecting on their financial goals for the previous year, a striking 89% of respondents admitted they had not accomplished everything they set out to achieve in 2024. The top resolutions left unfinished included:
- Not saving enough money (51%)
- Not being as fit and active as planned (38%)
- Not traveling enough (32%)
- Not spending money thoughtfully enough (31%)
These unmet goals underscore the difficulties many face in balancing financial aspirations with life’s unpredictable demands. The acknowledgment of these shortcomings, however, may be a motivating factor as people enter 2025 with renewed determination.
Budgeting and Mindful Spending
Duransoy stressed the importance of conscious budgeting and spending, warning that “the dollars quickly add up” if individuals are not deliberate about their financial choices. He advised individuals to develop and adhere to a structured financial plan to ensure that expenditures align with their values and financial goals.
One strategy suggested by financial experts involves focusing on incremental financial literacy improvements. For instance, understanding key concepts like APR and APY can empower individuals to make smarter financial decisions. Additionally, tracking monthly expenses and setting achievable savings targets can help Americans build better money habits over time.
Path Forward
The survey’s findings highlight both the challenges and opportunities Americans face as they strive to improve their financial well-being. While the road to financial security can be daunting, the collective intention to adopt better habits in 2025 is a hopeful sign. With resources like financial education platforms and advice from experts, more people can develop the skills needed to navigate complex financial landscapes.
By taking proactive steps—such as budgeting, seeking financial guidance, and setting realistic goals—Americans have a promising path toward greater financial stability and success in the coming year.
What are your thoughts? Please comment below and share this news!
True Activist / Report a typo
