How people plan to improve their money habits in 2025

According to a recent survey, the majority of Americans want to improve their financial habits in 2025.

The survey of 2,000 Americans also found that more than four in 10 (42%) predict they’ll have a “holiday hangover” this year.

Nearly half (49%) are planning to hibernate in January, to be less active and social, and to spend less money after the 2024 holiday season.

Commissioned by global savings platform, Raisin (https://www.raisin.com/en-us/hibernation), the study found that along with 65% hoping to improve their money habits in 2025, more than a quarter (26%) would like to improve their financial literacy in the new year.

To illustrate this lack of financial literacy, more than one in four of those surveyed (26%) don’t know what interest rate they’re getting from their bank or financial institution.

When quizzed, most (59%) didn’t know what APR (annual percentage rate) meant, 78% were confused by the abbreviation APY (annual percentage yield) and 79% did not know that ROI stands for “return on investment.”

Survey respondents also weighed in with their general reflections on 2024, and more than half of respondents (54%) said that 2024 “got away” from them.

Additionally, most (89%) did not accomplish everything they set out to in 2024.

The most common incomplete resolutions from last year turn out to be not saving enough money (51%), not being as fit and active as planned (38%), not traveling enough (32%) and not spending money thoughtfully enough (31%).

Most (55%) are planning on taking a “slow living” approach to 2025, and on average, those respondents plan to slow their lifestyles down by 33% in the new year.

More than four in ten Americans (44%) plan to partake in Dry January and another 44% are doing a “no buy” challenge (only spending money on what’s absolutely necessary) in January.

“One of the first steps to improving your finances is to build upon your financial literacy,” said Cetin Duransoy, chief executive officer at Raisin. “And don’t feel bad if this seems like a daunting task. Finance can be an intimidating topic. So ask for help, if needed, from a trusted family member, friend, finance expert or institution.”

According to the results, slowing down in the new year may have a huge impact on their wallets.

Those who plan to take a break from social media for all or some of 2025 (37%) predicted they’d save an astounding $5,366, on average, by doing so.

Respondents who will pause dating for all or some the new year (29%), estimated they’ll save $3,961, on average.

Thirty-one percent are making a point to stay away from trying new health trends in 2025 and they estimate they’ll save $3,900 for their trouble.

“The research demonstrates how quickly the dollars add up, if you’re not consciously budgeting and spending,” said Duransoy. “It’s so important to have a solid financial plan in place. That way you can be intentional and spend on what brings you joy while working towards financial security.”