What’s New
Americans are expecting to have fuller wallets in 2025, according to a new survey by WalletHub.
Why It’s Important
The U.S. economy has experienced the most robust recovery from the coronavirus pandemic among major developed nations. As things stand, it is looking in considerably better shape than it was just a few years ago: annual inflation is nearing the Federal Reserve’s 2 percent target without triggering a recession, with recent rate cuts helping toward this, while consumer spending and the employment rate remain relatively strong.
While markets reacted favorably to the election of Donald Trump in November, with experts predicting further growth on strong foundations, there still remains some uncertainty about some potential fiscal policies earmarked for the incoming Republican administration, such as tariffs, mass deportations, as well as corporate and personal tax cuts.
What To Know
According to the survey conducted with 220 nationally representative respondents, 66 percent said they believed 2025 would be better for their wallet than 2024, while 20 percent indicated they think they’ll be worse off, and 14 said they expected their financial standing to stay the same.
Of those making finance and money based new year resolutions, 41 percent said they wanted to save more, and 21 percent said they wanted to spend less. Twenty percent said they’d like to make more money this year, while 11 percent said they want to work more toward paying off existing debts.
Still, anyone aspiring to be better off will be subject to wider economic impacts. Inflation is by far the biggest concern, with 56 percent of Americans indicating it is their biggest financial worry heading into the new year.
Other potential fiscal downturns, like a recession, stock market drop, or a real estate downturn all scored under 20 percent, while the prospect of losing a job and becoming unemployed was a concerning factor for 8 percent.