Nearly half of consumers plan on changing their financial New Year’s resolutions – BMO Survey

A special report from the BMO Real Financial Progress Index reveals that 74 percent of Americans are financially optimistic looking ahead to 2024 – more than a year ago (68 percent). BMO’s index also found that nearly half (46 percent) say their New Year’s financial resolutions have changed due to rising costs of living and inflation. 

Top changes to 2024 New Year’s money resolutions due to rising costs include: 

• More thrifty, frugal spending: 31 percent of Americans say they plan to minimize spending in 2024. 
• New budgets for a new year:  24 percent plan to create financial goals or a budget to follow in 2024. 

Notably, 40 percent of Americans say they do not make New Year’s money resolutions and 68 percent have no written financial plan, regardless of what time of year it is.

“These findings clearly show that a majority of Americans are feeling positive about their finances as the New Year approaches, even in a challenging economy. At the same time, with so many reporting they don’t have a financial plan, we can’t stress enough how important it is to begin defining your financial goals for 2024, and evaluate monthly budgets in relation to the higher cost of everyday items to help you make real financial progress in the year ahead.”

– Paul Dilda
Head of U.S. Consumer Strategy at BMO

Americans’ financial confidence improves from last year as consumers outline goals 

The index also highlights two notable year-over-year increases when it comes to how Americans view their financial situations: 

• Financial confidence improves: 71 percent of Americans are confident in their financial situation, up from 68 percent this time last year. 
• Americans feel better off: 44 percent say they are financially better off today compared to 38 percent a year ago. The number of Americans who say they are somewhat or much less secure also declined from last year – 26 percent today compared to 32 percent in late 2022.  

Additionally, the BMO Real Financial Progress Index explores Americans’ top financial goals: 

• Saving for retirement (59 percent)
• Taking a vacation (45 percent)
• Paying down debt (44 percent)
• Making a major purchase such as a car or large appliance (41 percent)
• Saving for children’s expenses (28 percent)
• Buying a home (25 percent)

To find out how BMO helps customers make financial progress, visit: https://www.bmo.com/us.