Consumer Behavior

Consumers focusing on short-term money goals as new year arrives

Photo by istock.com

December 12, 2022

More than half of U.S. consumers, 53%, are intent on paying off credit card debt and building emergency savings as a new year arrives.

The consumers are putting those goals ahead of saving for college or retirement, according to a Fidelity Investments study, "New Year's Financial Resolutions," that polled just over 3,000 Americans.

The trend, according to an AOL Yahoo Money report, reflects an increasing pessimism among consumers.

"The optimism from last year has abated, replaced by concerns about inflation and market volatility," Stacey Watson, senior vice president of life event planning at Fidelity Investments, told Yahoo Money. "With the level of inflation the highest it's been in 40 years, our study is going to reflect the pain people are feeling — and how they are responding to it. This is particularly true when it comes to short-term savings objectives for the first time surpassing longer-term savings objectives."