Americans Resolve to Approach Money Differently in 2024

Nine in 10 Americans who plan to make a financial resolution for 2024 are thinking differently this year, given events of the past two years, according to a new study from Fidelity Investments.

A third of respondents plan to make their finances more of a priority, and 38% will consider more conservative goals. These findings are similar to trends seen in Fidelity data, including an increase in customers completing plans — totaling 6.6 million to date.

Even with the majority of study participants committed to thinking differently, the top resolutions remain consistent with years past:

Save more money: 41%
Pay down debt: 38%
Spend less money: 30%

Fidelity found a slight shift from its 2023 study, with more Americans prioritizing long-term savings goals in the year ahead over short-term ones.

Notably, savings priorities differ across age, gender identity and race, with 57% of baby boomers, 54% of female and 51% of Hispanic respondents still prioritizing short-term savings, compared with 46% of younger, 41% of male and 42% of Asian respondents.

Big Village conducted a national online survey in late October among 3,002 adults.

Inflation Informs Day-to-Day Livability

Fidelity's study found that 54% of respondents feel overwhelmed by their personal finances, and 31% said they have a stressful relationship with money.

Inflation is the main reason that survey participants said they were unable to stick to their 2023 financial resolutions, with 40% saying they had less money to work with because of higher day-to-day expenses.

As inflation hangs on and concerns about the global economy remain, 45% of participants, and 51% of younger ones, who experienced financial setbacks said they had dipped into emergency savings. Forty percent of all respondents anticipate more financial struggles next year because of a higher cost of living.

When it comes to evaluating financial resolutions, inflation remains the top reason that Americans were not able to stick to their 2023 goals, with 40% claiming they had less money to work with due to inflation's impact on day-to-day expenses. Looking ahead, 32% plan to readjust their budget due to student loan payments resuming.

Notwithstanding these fraught responses, planning is making a resilient comeback, with 70% of those surveyed saying they have a plan for reaching their financial goals. Women lead the way: 83% agreed that having a plan in place will help them better handle the unexpected, compared with 78% of men.

However, younger generations continue to express the most confidence. Three-quarters of millennial and Generation Z respondents claimed they will be better off in 2024, compared with two-thirds of Gen Xers and half of boomers.

"With the number of Americans tapping into their emergency savings after a year of financial stressors and setbacks, it's not surprising to see them look forward to new, brighter chapters in 2024," Kelly Lannan, senior vice president of emerging customers at Fidelity Investments, said in a statement.

"Encouragingly, it's great to see so many taking a practical and confident outlook for the year ahead while they navigate choppy financial waters and fine-tune their financial wellness habits and savings goals."