All signs currently point to a resilient economy. Americans have been spending pretty freely, the job market remains strong, wages are rising faster than inflation and interest rates have been rising. Meanwhile, prices have cooled off a bit and inflation is steadily decreasing.
Despite these positive indicators, many Americans don’t expect their wallets to feel any better next year.
A new Bankrate survey finds that nearly two-thirds of Americans (63 percent) don’t expect their personal finances to improve in 2024. That includes 38 percent who think their financial situations will remain the same and 26 percent who think their finances will worsen. Nearly 2 in 5 Americans (37 percent) think their financial situations will improve in the new year, slightly up from last year (34 percent).
The biggest reason behind Americans’ financial pessimism continues to be inflation. Even if inflation is improving, economists say the prices of goods like food and gasoline remain higher than Americans are accustomed to, which is why they may not be feeling immediate relief. That relief is what many Americans are judging their financial outlook on.
— Greg McBride, CFA | Bankrate chief financial analyst
Bankrate’s insights on American financial outlooks for 2024
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Americans’ outlook for their finances is bleak, but better than last year: 63% of Americans do not think their personal financial situations will improve in 2024, down from 66% last year.
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More Americans are…
