A new survey reveals that paying off debt is the top financial goal for Americans in 2025.
The survey said amongst older generations, 21% of Americans prioritized it.
Bankrate's Financial Outlook Survey found that more members of Gen X are prioritizing debt reduction (26%) than any other generation. Gen Z was at the low end with only 9% putting paying down debt as their main financial goal.
Other common financial goals by Americans include saving money for emergencies (12%) and earning a higher salary (11%).
The survey also showed optimism among consumers about the economy with many believing inflation, which is stalled on its path to hit the Federal Reserve Board's goal of 2%, will not affect their financial goals.
Nearly 44% of Americans think their finances will improve in 2025, up from 37% in 2024 and 34% in 2023, Bankrate found.
The survey highlighted Gen Z's (ages 18-27) belief that their finances will improve next year accounting for 55% of participants, while millennials (28-43) made up 49%, Gen X (ages 44-59) included 38%, and baby boomers (60-78) accounted for 37%.
This optimism stems partly from the easing inflation rate, which hit a 41-year high in 2022 but moderated to 2.7% in November.
But among people who expect their finances to be worse in 2025, 44% blamed high inflation.
Experts encourage using money-saving strategies to make better, smarter financial decisions.
On Wednesday, the Federal Reserve cut a key short-term interest rate by 0.25%. It now sits at 4.25-4.50%.
