As they look forward to the new year, many Americans remain optimistic and determined to make their money work harder, with 72% confident that they will be in a better financial position in 2021, according to Fidelity Investments’ new year financial resolutions study.
This optimism shines through in an extraordinarily bleak year when more than two-thirds of Americans experienced financial setbacks in 2020, often because of job loss or an emergency expense.
Even those lucky enough to maintain their income still may have had to tap savings to help family members or friends.
The study’s findings were based on a CARAVAN Survey conducted by Engine Insights in mid-October among 3,011 adults.
Making a Resolution
“Americans are clearly ready to leave 2020 behind and start 2021 off on the right foot, including when it comes to their finances,” Stacey Watson, senior vice president with oversight for life event planning at Fidelity Investments, said in a statement
“This year’s top financial resolutions are consistent with what we’ve seen in the past; however, what makes 2021 unique is how people will achieve them, given the financial pressures and major life events many continue to experience throughout the pandemic.”
The survey found that 65% of Americans are considering a financial resolution for 2021, which is down marginally from last year, but still quite strong given the stresses many families experienced.
Younger generations appear to be more committed to actively improving their finances in the new year, with 78% of all Gen Z and millennial respondents considering a financial resolution, compared with 59% of all Gen Xers and baby boomers.
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“Younger generations are building up their careers, families and finances, so it makes sense they have important financial resolutions to make,” Watson said.
“Still, Gen Xers and boomers also experienced significant financial challenges in 2020 and may want to consider making some resolutions of their own to build a stronger financial future, particularly when it comes to retirement readiness.”