(LibertySociety.com) – For the last several years, Americans have been faced with increased costs as a result of record high inflation. Despite this, nearly 66 percent of respondents in a recent Fidelity Investments poll said they believe they will be more secure financially than they were this year.
Kelly Lannan, who works for Fidelity, said that “it’s not surprising” that most Americans expect a new year to be better than the last. Seventy-five percent of Gen Z respondents reported the feeling, along with 79 percent of millennials. Gen X and boomers polled much lower, with just 64 and 52 percent, respectively, having positive financial expectations for 2024.
Around 33 percent of respondents reported they are worse off financially than they were just one year ago. Of those who felt negatively about 2024, most blamed inflation and the increased cost of living. The survey also found that inflation was blamed for those who did not achieve their financial goals this year. The top concern of respondents for the new year, coming in at 40 percent, was how inflation would affect their savings and everyday purchases. Thirty-seven percent reported concerns about their ability to pay for unexpected expenses. Forty-five percent of those who experienced hardships this year reported having to pull from funds set aside for emergencies.
Lannan said she was encouraged to “see so many taking a practical and confident outlook for the year ahead” while also working on saving more money and honing in on the health of their finances. Inflation has fallen from a record high of 9.1 percent in last year to 3.2 percent in October. The Federal Reserve hiked interest rates several times this year, but the economy proved resilient. Most Americans are less than enthusiastic about the state of the economy and believe that the United States is experiencing a recession. Despite those feelings, Americans are spending more than ever before this holiday season.
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