Americans appear to be somewhat more hopeful about the upcoming year, according to Fidelity Investments' 2022 New Year's Financial Resolutions Study.
Sixty-two percent of study participants said they feel optimistic about the future, despite the unknown, and 72% expressed confidence that they will be in a better financial position in 2022. This number rose to 81% among those in the 18-to-35 age group.
Fidelity said that perhaps as a result, 68% of respondents are making financial resolutions for the new year.
At the same time, most people have not forgotten what the country has been through and are looking at their financial expectations practically, with concerns about inflation and rising costs weighing heavily on the minds of many.
The study found that Americans across the board are also making resolutions around physical and mental health objectives at higher levels than in the past year.
Fidelity said this may be the result of achieving success in 2021 with goal-setting. Seventy-one percent of respondents reported that they stuck with their 2021 financial resolutions, up from 58% in 2020.
The study consisted of 3,031 adults aged 18 and older, split almost evenly between men and women, with an average age of 48 and an average annual income of $65,000. Slightly more than one-fifth were retired.
"This study confirms that actions taken at the start of the pandemic — such as budgeting better and replenishing that emergency savings fund — are becoming permanent habits for many," Stacey Watson, senior vice president of life event planning at Fidelity Investments, said in a statement.
"Americans are connecting their new perspective on well-being to the way they approach their finances, and as a result, becoming more thoughtful about saving and spending."
Ironically, some of this financial success may be attributable to the pandemic, Fidelity said. In fact, respondents discovered several surprising silver linings these past two years:
- "Becoming more thoughtful about saving and spending," 42%
- "Becoming closer to family," 39%
- "Becoming stronger as a person," 34%
Fidelity said this aligns with what the firm has observed among its clients: 1.6 million households engaged in planning interactions with Fidelity in the 2021 second quarter alone, a 24% increase over the same period in 2020.
This thoughtful approach to finances is carrying through in the new year, with a more practical view toward financial resolutions: 38% of respondents overall and 46% of the younger group are considering more conservative goals.
The study was based on a national online CARAVAN Survey conducted in mid-October among 3,031 adults.
Many Americans Prioritize Themselves
The study found cautious optimism the prevailing sentiment among respondents, with 32% characterizing 2022 as a year of hope. This sentiment is echoed in how many families feel about their financial stability.
This year, 34% said they are in better financial shape — up from 29% — compared with 24% in worse shape — down from 29%. Those in better shape said the main reasons for their success were things within their control: saving more, budgeting better and working more hours.
For those resolved to save more in 2022, the objectives are split: 51% plan to save for the long term, while 49% are looking at shorter-term objectives, such as boosting emergency savings or saving for a mortgage.
