Americans Head Into 2025 With Financial Confidence: Survey

Related to their concerns about inflation, 38% expected their living expenses to be higher in the first half of 2025 than they were in late 2024.

Sixty-seven percent of respondents reported having some form of debt: 40% credit card debt, 18% mortgage or home equity debt and 18% medical debt. On average, those with credit card debt owe on average $8,295, $364 more than in 2023:

Gen Xers: $10,141 on average Boomers: $9,502 Millennials: $6,859 Gen Zers: $2,990

These debtors said they are paying down what they owe by $491 a month on average, up from $363 the year before.

Caregivers in the survey reported unique challenges. Ninety percent said their responsibilities have increased or stayed the same as last year’s. Seventy-five percent reported that they have some type of debt, compared with 62% of non-caregivers.

Ruggles noted that family caregiving is a demanding responsibility with significant financial challenges because of the costs or loss of income associated with it. However, 82% of caregivers are planning to take action in 2025 in response to factors affecting their finances, compared with 68% of non-caregivers who are doing the same.

“Caregivers report that they are adjusting their strategies by cutting back on discretionary spending and developing a secondary income stream,” she said. “Most family caregivers are balancing care and work, and look to their employers for support across the spectrum of care.”

Being Proactive 

New York Life’s survey found that Americans are being proactive with their finances, with 57% of respondents saying they review their financial strategies or budget at least every quarter.

However, only 26% reported actually having a financial strategy in place and feeling confident in that strategy. Thirty-seven percent have no financial strategy at all, and 35% said they have one but need help with it — some around a recent life change, including retirement, growing a family and buying a home.

Seventy-three percent of respondents said they were adjusting their financial habits in response to concerns like rising inflation. Thirty-seven percent are reducing discretionary spending, while 28% are modifying their budgets or financial strategies.

Among those who are reconsidering their financial strategies, 35% said they plan to make changes to their investment portfolio or strategy in 2025. Eighty-nine percent said they would invest more or the same amount of money as they did in 2024.

Americans who work with a financial advisor or professional reported higher levels of financial confidence, according to the survey. They are likelier than their peers to feel prepared across several areas, including for a financial emergency, ability to manage debt and prepare for retirement.

Still, only 15% of respondents plan to work with a financial professional to help reach their financial goals in 2025.

“Financial stress and challenges are often seen as a personal responsibility, but strong financial foundations include building a team of experts to help you and your family manage and plan for a more secure, healthy future,” Ruggles said. “No one should have to navigate their financial journey alone.”