Rising Budget Stress Drives More Americans to Set Financial Resolutions, According to Fidelity

As the new year approaches, more Americans are contemplating their financial resolutions. A recent study by Fidelity Investments reveals a growing focus on short-term savings goals among respondents.

According to Fidelity’s annual survey, 64% of participants are considering a financial resolution for the upcoming year, up from 56% last year. The study highlights that the top three financial resolutions have remained consistent: 44% aim to save more money, 36% want to pay down debt, and 30% are looking to reduce their spending.

Leanna Devinney, a market leader at Fidelity Investments, shared insights with FOX Business, stating, “This was the second year in a row where Americans were prioritizing more of those short-term savings.” She noted that many individuals are focusing on immediate financial goals, such as building an emergency fund or reducing debt, rather than long-term objectives.

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More Americans are considering making financial resolutions for next year than a year ago, Fidelity found. (iStock)

The study also revealed that 55% of respondents feel overwhelmed by their personal finances, with 31% describing their relationship with money as stressful. Among different age groups, Millennials (68%) and Gen Z (64%) reported feeling the most overwhelmed.

Financial stress is evident, with many Americans expressing concerns about saving for goals after paying bills (35%), managing monthly expenses (34%), covering healthcare costs in retirement (30%), and having sufficient retirement savings (30%).

Fidelity’s findings indicate that nearly three-quarters of Americans faced a financial setback last year, which may explain the heightened focus on building savings for unexpected challenges. About 20% reported experiencing an unexpected non-health emergency.

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Respondents noted stress surrounding having enough leftover after bills to save for their goals. (Nicolaus Czarnecki/MediaNews Group/Boston Herald via Getty Images)

Devinney pointed out that in 2025, 72% of Americans reported experiencing some form of financial setback, with 55% feeling overwhelmed by their finances. Rising prices have led 33% to feel they have significantly less disposable income.

Despite these challenges, optimism is on the rise. The study found that 70% of respondents believe they are in a better or similar financial situation compared to the previous year. Additionally, 43% feel more positive about their finances than they did five years ago, an increase from 36% last year.

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Fidelity’s study found optimism when respondents compared their current financial situation to five years ago. (Alex Tai/SOPA Images/LightRocket)

Devinney noted that the past two years have been tumultuous, marked by significant market volatility followed by a rebound. The ongoing concerns about rising prices have prompted Americans to prioritize short-term savings. “Many have had to dip into their savings,” she explained.

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Encouragingly, Devinney highlighted that Americans are increasingly focusing on their short-term financial goals. The study revealed that 25% of respondents plan to build their emergency fund in the coming year, while another 23% aim to adhere to a spending budget.

As the new year approaches, more Americans are contemplating their financial resolutions. A recent study by Fidelity Investments reveals a growing focus on short-term savings goals among respondents.

According to Fidelity’s annual survey, 64% of participants are considering a financial resolution for the upcoming year, up from 56% last year. The study highlights that the top three financial resolutions have remained consistent: 44% aim to save more money, 36% want to pay down debt, and 30% are looking to reduce their spending.

Leanna Devinney, a market leader at Fidelity Investments, shared insights with FOX Business, stating, “This was the second year in a row where Americans were prioritizing more of those short-term savings.” She noted that many individuals are focusing on immediate financial goals, such as building an emergency fund or reducing debt, rather than long-term objectives.

BESSENT UNVEILS ‘TRUMP ACCOUNT’ DETAILS, ANNOUNCES PHILANTHROPIC CHALLENGE

More Americans are considering making financial resolutions for next year than a year ago, Fidelity found. (iStock)

The study also revealed that 55% of respondents feel overwhelmed by their personal finances, with 31% describing their relationship with money as stressful. Among different age groups, Millennials (68%) and Gen Z (64%) reported feeling the most overwhelmed.

Financial stress is evident, with many Americans expressing concerns about saving for goals after paying bills (35%), managing monthly expenses (34%), covering healthcare costs in retirement (30%), and having sufficient retirement savings (30%).

Fidelity’s findings indicate that nearly three-quarters of Americans faced a financial setback last year, which may explain the heightened focus on building savings for unexpected challenges. About 20% reported experiencing an unexpected non-health emergency.

FINANCIAL INFLUENCER TRACKERS ‘QUIET MILLIONAIRES’: HERE’S THE NO. 1 STRATEGY THEY ALL SHARE

Respondents noted stress surrounding having enough leftover after bills to save for their goals. (Nicolaus Czarnecki/MediaNews Group/Boston Herald via Getty Images)

Devinney pointed out that in 2025, 72% of Americans reported experiencing some form of financial setback, with 55% feeling overwhelmed by their finances. Rising prices have led 33% to feel they have significantly less disposable income.

Despite these challenges, optimism is on the rise. The study found that 70% of respondents believe they are in a better or similar financial situation compared to the previous year. Additionally, 43% feel more positive about their finances than they did five years ago, an increase from 36% last year.

MIDDLE-INCOME AMERICANS PESSIMISTIC ABOUT FINANCIAL FUTURE AMID PERSISTENT INFLATION, ANALYSIS SHOWS

Fidelity’s study found optimism when respondents compared their current financial situation to five years ago. (Alex Tai/SOPA Images/LightRocket)

Devinney noted that the past two years have been tumultuous, marked by significant market volatility followed by a rebound. The ongoing concerns about rising prices have prompted Americans to prioritize short-term savings. “Many have had to dip into their savings,” she explained.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Encouragingly, Devinney highlighted that Americans are increasingly focusing on their short-term financial goals. The study revealed that 25% of respondents plan to build their emergency fund in the coming year, while another 23% aim to adhere to a spending budget.