Americans Weigh In on Financial "Resolutions"

NEW YORK, Jan. 8, 2015 /PRNewswire/ -- As a new year begins, one hopes to be able to look ahead with confidence and optimism. Sometimes, however, it's perhaps enough to at least reflect upon the future with a less pessimistic outlook than you did a year ago. That's where American attitudes now stand. Twenty-eight percent (28%) of U.S. adults expect the economy to improve in the coming year, 50% expect it to stay the same, and 23% expect it to get worse; while the percent expecting it to improve is only marginally up from a year ago (when it was at 27%), the percentage expecting it to get worse has dropped sharply in that time, from 32% in December 2013 to 23% in December of 2014.

• Consistent with last year, Democrats and Republicans are sharply divided on the coming year's economic outlook, with Democrats far more likely to believe the economy will improve (42% vs. 17% of Republicans) while Republicans are more likely to say it will get worse (27% vs. 14% of Democrats).

Results are similar when assessing financial outlooks closer to home, with 22% thinking their household's financial condition will be better in the next six months (up slightly from 20% in November of 2013), 56% believing it will remain the same, and 21% saying it will be worse – down from 30% saying the same just over a year ago. But with this eye toward stability, what are Americans putting on their financial to-do lists for the coming year?

These are some of the results of The Harris Poll® of 2,255 U.S. adults surveyed online between December 10 and 15, 2014. (Full results, including data tables, can be found here)

Fiscal resolve
U.S. adults were also asked about some of their financial plans for the year ahead, along with being questioned on what they may have planned on doing in 2014 – and whether or not they followed through on those items.

Reflecting on the year which just came to a close, Americans appear to have enjoyed a respectable follow-through ratio for 2014 financial plans. Among those who indicated having planned a series of financially "responsible" actions in 2014, the percentage saying they followed through on their intentions consistently outpaced those who say they did not. Some of the 2014 plans showing solid follow-through rates include:

• "Cut back on my household spending" (43% planned and followed through vs. 15% planned but did not follow through),
• "Pay down my level of debt" (37% and 15%, respectively),
• "Save more in the year ahead" (35% and 24%, respectively),
• "Save more for retirement" (26% and 16%, respectively),
•  "Undertake home improvements that increase the value of my home" (21% and 9%, respectively), and
• "Get rid of one of my credit cards" (15% and 9%, respectively).

Turning to 2015, nearly four in ten Americans anticipate cutting back on their household spending in the year ahead (38%), though it's worth noting that fewer are forecasting such belt-tightening than a year ago, when 45% indicated the same.

Over a third each indicate they plan to save more in the year ahead (36%) and to pay down more debt (35%); these outlooks have also dropped in comparison to last year, when 40% of Americans were anticipating each of these measures.

Roughly two in ten (21%) plan on saving more for retirement (down slightly from 23% last year), 15% plan on getting rid of one or more credit cards (on par with last year's findings) and 13% plan on undertaking home improvements that increase the value of their home (down slightly from 15% a year ago).

Looking back to the first year this question was asked, 2008 (at which point respondents were asked to evaluate their 2009 plans), Americans are considerably less likely now than they were at the time to say:

• They plan to cut back on spending in the year ahead (down 17 percentage points),
• To pay down their level of debt (down 10 points),
• To get rid of one or more credit cards (down 9 points), and
• To save more in the year ahead (down 6 points).

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Methodology
This Harris Poll was conducted online, in English, within the United States between December 10 and 15, 2014 among 2,255 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.

All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, The Harris Poll avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.

Respondents for this survey were selected from among those who have agreed to participate in Harris Poll surveys. The data have been weighted to reflect the composition of the adult population. Because the sample is based on those who agreed to participate in our panel, no estimates of theoretical sampling error can be calculated.

These statements conform to the principles of disclosure of the National Council on Public Polls.

The results of this Harris Poll may not be used in advertising, marketing or promotion without the prior written permission of The Harris Poll.

The Harris Poll^® #3, January 8, 2015
By Larry Shannon-Missal, Managing Editor, The Harris Poll

About The Harris Poll®
Begun in 1963, The Harris Poll is one of the longest running surveys measuring public opinion in the U.S. and is highly regarded throughout the world. The nationally representative polls, conducted primarily online, measure the knowledge, opinions, behaviors and motivations of the general public. New and trended polls on a wide variety of subjects including politics, the economy, healthcare, foreign affairs, science and technology, sports and entertainment, and lifestyles are published weekly. For more information, or to see other recent polls, visit the Harris Poll News Room.

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SOURCE The Harris Poll

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