America's Financial Resolutions for 2016
A Financial Overview of 2015
Overall, 2015 was a lukewarm year for most Americans. As of
When asked about financial regrets in 2015, nearly 40 percent of Americans (39.54%) stated they should have put more money into general savings. The second largest financial regret of 2015 was failing to stick to a set monthly budget (34.91%) followed not reducing or paying off debt (32.97%). Less than a quarter of Americans (24.05%) stated they had no financial regrets for 2015.
All of these numbers are slightly worse amongst Millennials. Amongst 24 to 34 year olds, 17.09% feel they were in a bad spot as of the end of 2015, with only 5.82% stating they were great, a significant difference from the national average. Millennials have the same leading financial regrets as the national responses, but in much higher numbers:
- 57.82% of Millennials wished they had put more money into general savings
- 50.18% of Millennials wished they had better followed a set monthly budget
- 42.91% of Millennials wished they had reduced or paid off more debt
Only 11.27% of Millennials stated they had no financial regrets. Even with a better economy, Millennials continue to be frustrated by their inability to save and pay off student debts.
Outlook and resolutions for 2016
American optimism towards finances in 2016 is somewhat reserved. Only 10.76% state it will be a great year and that their finances will be fine. Most Americans feel the year will be OK with some financial ups and downs (39.94%) or that it will be a good year and a year for some financial improvement (30.18%). About 1 in 5 Americans have a pessimistic outlook on their personal finances for 2016 stating it will either be a bad or very bad year with money continuing to be a struggle or that personal finances may worsen.
Financial goals are on nearly 85 percent (84.61%) of American's
While Millennials may have trailed fiscally in 2015 by having the most regrets, Millennials were substantially more likely to include financial resolutions in their
And the 2016 housing market?
Even though financial outlook is reserved amongst Americans, the housing market looks pretty positive for 2016. Of the total survey respondents 5.43% of Americans, expect to purchase a home in 2016. About one in five Americans (19.17%) said they may purchase a home depending on their financial situation and available opportunities. Within this pool of potential homebuyers in 2016, 37.85% will be first-time home buyers, of which almost 43% will be Millennials.
Based on the survey data, first-time home buyers will be largest home buyer group, followed closely by current homeowners looking to change homes (36.23%). Of potential homebuyers, 13.36% will be previous homeowners, now returning to the home buyer market. These numbers may include normally active homeowners in transition or homeowners who may have lost a home during the housing crisis. Because the housing 2015 marked the seventh year since the 2008 housing bubble that caused many foreclosures. This is significant as a foreclosure remains on your credit report for 7 years.
In terms of supply, 4.64% stated they plan to sell their homes in 2016. 14.40% may sell their homes depending on the situation. Based on these numbers, there may be more housing demand than there will be housing supply in 2016 creating a very competitive market for shoppers. With the recent increase in interest rates by the Fed, plus hot market competition, we may see some want-to-be homebuyers, priced out of the market, until at least supply, especially affordable starter homes, meet demand.
Aiming high
We will have to see if America sticks to its financial resolutions. Less than 1 in 4 of American's completed all their resolutions last year. About 1 in 5 Americans state they, on average, last a week or less with resolutions and another third drop off before the first half of the year. Meaning about 20 percent of American's may have already quit their financial resolutions as of this release!
Methodology
The
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