After a long recession-prone time, we finally are heading toward a better financial year in 2024. Investors along with various apex banks are betting on 2024 to be the savior year for the financial landscape.
Numerous financial service organizations have conducted surveys to understand investor’s sentiments. Almost 79% of Generation Z along with 64% and 52% of Baby Boomers and Generation X have responded and found optimistic for a brighter financial year. The likelihood that younger generations will have better financial circumstances next year was higher. In short, the survey portrayed that Americans are betting on financial goals and are more confident with their money in 2024.
According to a third of respondents to Fidelity Investments' 2024 New Year's Financial Resolutions study, inflation is still a big worry. It has a big impact on daily cash flow and spending. About the same percentage as the previous year, more than a third feel their financial situation has worsened.
However, two out of three respondent is confident and optimistic about a better overall financial year than 2023. As much as 70% of Americans have done their financial planning and about 83% of women and 78% of men prepared a plan to curb the unexpected downturns as well. There were also speculations among investors that the Federal Reserve might end interest rate hikes by March-April as the economy is already squeezed hard.
Kelly Lannan, senior vice president of emerging customers at Fidelity, said in a statement "It's not surprising to see Americans looking forward to new, brighter chapters in 2024 with the number of them tapping into their emergency savings after a year of financial stressors and setbacks,"
She also added, "It's encouraging to see so many adopting a realistic and assured perspective for the upcoming year as they navigate choppy financial waters and refine their savings objectives and financial wellness practices."
According to Commerce Department data, inflation has significantly decreased since hitting a 40-year high of 9.1 percent last summer. As of October, it was only 3.2 percent.
According to previous surveys, the following are the top financial resolutions for 2024: Conserving cash with 41% of respondents, Debt repayment (38%), and Spending less money (30%).
Approximately 40% of the respondents said that inflation affects their day-to-day uses and as a result, they are planning long-term saving goals while others (51%) are prioritizing short-term saving goals. The rest 9% are still not convinced and feel the country might not get out of recessionary waves.23
Key Takeaways
- Due to the pressure that inflation placed on household budgets in 2023, 35% of participants in a Fidelity Investments survey said that their financial situation had gotten worse since the beginning of the year.
- The majority of respondents stated that they planned to improve their financial year in 2024 and that they expected to do so.
- The top priorities of respondents were Spending less, paying off debt, and saving money.
