Savings Are Up, But New Year’s Resolutions Bring Financial Requirements

Americans Are More Focused On Saving, But 49% Plan To Spend Money To Maintain 2022 Resolutions: CIT Bank Survey

According to a new survey from CIT Bank conducted by The Harris Poll, an encouraging 70% of Americans are saving the same amount or more money compared to last year. Despite prioritizing their savings, 49% of respondents planning to make a resolution plan to purchase something, such as a material item or subscription service, to maintain their 2022 New Year’s resolutions – signaling a potential concern in balancing savings goals with spending temptations.

“Making resolutions for the year ahead gives consumers the opportunity to start the year on a positive note, especially given the uncertainty we’ve experienced in years prior,” said Ravi Kumar, head of CIT’s direct bank. “However, Americans should be cognizant that the resolutions they’re making aren’t causing them to spend too much money to maintain these goals.”

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New Year, New Goals

Americans planning to make 2022 resolutions are prioritizing their health, personal life and finances as top goals for the new year, with this differing by generation:

• Health: 65% (e.g. prioritizing mental health, developing healthy habits, practicing self-care, managing weight, etc.); highest among Boomers/Seniors (ages 56+), 78%
• Personal life: 59% (e.g. focusing on spending more time with family/friends, traveling, getting out more, etc.); highest among Gen Z (ages 18-26), 66%
• Finances: 54% (e.g. prioritizing budgeting, saving, investing, etc.); highest among Gen X (ages 41-55), 62%
• Professional development: 35% (e.g. go back to school, switch careers, learn a new skill, etc.); highest among Millennials (ages 27-40), 47%
• Societal Involvement: 28% (e.g. volunteer, donate, become more politically/socially active, etc.)

The top financial-related resolution for 2022 is to save more money, which 77% of respondents planning to make a financial-related resolution are prioritizing. In fact, saving is the top financial goal across all income brackets and generations, outpacing improving credit scores (48%), spending less money (48%), reducing debt (47%), investing more (43%) and contributing to 401k and HSA plans (24%).

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Sticking to Your Goals

Many Americans have experienced a slump in keeping their resolutions halfway through the year (or earlier). However, CIT’s survey found that 90% of Americans who made New Year’s resolutions in 2021 reported that they have kept on track at least somewhat with these goals – an encouraging sign that people are sticking to their resolutions throughout the full year.

Americans have implemented a variety of methods to ensure they stick to their resolutions, with 52% of respondents who’ve made resolutions in the past using reminders, journaling and check-ins, 36% using monetary rewards and 33% using external motivation, such as working with a buddy who’s also keeping the same resolution.

More Savings = More Flexibility

With so many Americans prioritizing their savings compared to last year and resolving to continue this in 2022, it’s not surprising that 88% of respondents who are saving more this year compared to the same time last year believe that their savings have allowed them to be more flexible in how and when they spend their money.

“Looking at the year ahead, Americans are clearly prioritizing their savings, and we’re seeing this regardless of their age and income bracket. If you’re able to, putting money aside early and often is an important element of long-term financial wellness, and we encourage those who are doing so to keep it up,” continued Kumar.

CIT’s Savings Connect is a digital savings account that can make it easier to manage and maintain savings goals as it offers a streamlined banking experience with digital convenience to help customers develop consistent savings habits.