Many Americans aren’t feeling confident about their finances going into the new year.
According to Bankrate’s December Financial Security Index Survey, two-thirds of U.S. consumers do not expect their personal finances to improve in 2022, with slightly more than half of the group citing inflation as the barrier to a better money situation.
Inflation surged 6.8% in November of 2021, putting it at a 39-year high as prices climbed for food, housing and energy.
Other top reasons given by those who don’t expect financial improvement in the new year include the ongoing COVID-19 pandemic, stagnant or declining wages, personal debt and changing interest rates.
“Inflation worries have dragged consumer confidence to a decade low and is the top reason Americans don’t expect their finances to improve, and particularly to get worse,” said Greg McBride, Bankrate’s Chief Financial Analyst. “This feeling goes far beyond gas prices, as inflation has broadened out and consumers see higher prices at every turn.”
Of the one-third of the respondents who expect their money situation to improve in 2022, 46% attribute their optimism to making more money at work, while 36% percent chalk it up to having less debt.
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