Americans Prioritize Financial Stability for 2025, Study Finds
A recent study from Allianz Life Insurance Company reveals a growing trend among Americans—financial stability is becoming a top New Year’s resolution. With rising living costs and increasing financial pressures, this shift highlights the urgent need for better money management strategies. The study, titled the 2025 New Year’s Resolutions Study, examined financial attitudes and habits across various demographics, uncovering critical insights into how Americans are adapting to economic challenges.
Financial Stability Tops the List
Financial stability stood out as the No. 1 priority for 38% of Americans in 2025, an increase from 33% the previous year and the highest percentage in the past decade. This focus surpasses other goals, including professional and personal aspirations.
Millennials are leading the charge, with 44% prioritizing financial stability for the next year. By comparison, 37% of Generation Xers and 33% of Baby Boomers ranked financial stability as their primary resolution. Despite this, health and wellness remains the most common overall priority, with 45% of Americans identifying it as their top focus for 2025.
Key Statistics on Financial Goals
The Allianz Life study breaks down the specific ways Americans plan to improve their financial situations next year.
- 24% aim to build an emergency fund, up from 17% in 2023
- 15% will prioritize paying down credit card debt
- 15% want to increase their retirement savings
These goals reflect a shift toward proactive money management amid financial instability and rising stress levels.
Financial Stress Hits Hard
The pressure of managing day-to-day expenses continues to weigh heavily on Americans. According to the study, 41% of respondents are more stressed about their finances in 2024 compared to the prior year. Millennials report the highest levels of stress, with 52% saying their financial anxiety has grown, while only 37% of Generation Xers and 23% of Boomers echo the sentiment.
The primary drivers of this financial stress include:
- 54% cite the cost of daily expenses
- 49% point to insufficient income or retirement savings
- 35% blame inadequate emergency fund savings
- 35% struggle with high levels of debt
Additionally, the data reveals that many Americans recognize they have bad financial habits exacerbating their stress levels.
Poor Financial Habits
- 30% admit to spending too much on unnecessary purchases
- 28% reveal they don’t save any money at all
- 27% save some money but acknowledge it’s not enough
- 23% say they aren’t paying down their debt fast enough
This combination of rising costs, limited savings, and high debt levels underscores the need for a significant shift in financial behavior heading into 2025.
A Broader Trend in Financial Awareness
The trend toward prioritizing financial stability isn’t limited to one group. Across the board, Americans are increasingly aware of the need for sound financial planning. This shift is highlighted by a growing emphasis on savings, debt reduction, and emergency preparedness.
Recent news reflects this broader societal shift. According to studies conducted by the Pew Research Center, U.S. households have seen their savings depleted post-pandemic, with many struggling to rebuild their financial cushions in the face of rising inflation. Meanwhile, a 2024 report from Bankrate revealed that 57% of Americans are unable to cover a $1,000 emergency expense—a stark reminder of the precarious financial state many are in.
This trend has far-reaching implications beyond personal finance. Industries such as insurance, banking, and financial planning must adapt to meet shifting consumer demands. For insurers, for example, the trend presents an opportunity to promote products like life insurance and disability insurance that help individuals safeguard their finances against unexpected events. Meanwhile, financial advisors may see increased interest in budget planning, retirement accounts, and other financial tools.
How Industries Are Responding
From the insurance industry to retail and tech, businesses will need to pivot their strategies to address consumer concerns about financial security. The insurance sector can expand offerings that reflect current financial realities, while banks and credit unions may roll out products with lower fees and higher savings potential to attract cautious consumers. Even retailers could adjust their approaches, providing more payment options or incentives for spending less.
Tech companies also have opportunities here. Financial apps for budgeting, tracking expenses, and automated savings are increasingly popular. These tools empower users with the real-time data they need to make better financial decisions.
Building a Financially Secure Future
The findings from the Allianz Life study offer valuable lessons for everyone. Whether you’re a millennial burdened by loan payments or a retiree facing insufficient savings, the time is now to commit to actionable financial goals. Start by creating a written budget and tracking your expenses to identify areas where you can cut back. Build an emergency fund—ideally containing three to six months’ worth of living expenses—and focus on reducing high-interest debt as quickly as possible.
Technology also plays a critical role in achieving financial security. Apps and online platforms can help streamline savings, track spending, and even project long-term financial outcomes. Looking forward, artificial intelligence and machine learning could further tailor financial advice to individual needs, potentially reshaping the financial planning landscape in the years to come.
Ultimately, the road to financial stability in 2025 relies on a combination of individual effort, smart use of technology, and industry adaptation. By focusing on practical strategies and prioritizing their financial well-being, Americans can take steps toward a more secure future.