Consumers Say 2022 Was a Year of Bad Financial Behavior

With most of the holiday shopping complete and the new year approaching, Credit Karma surveyed more than 1,000 US consumers in early December to get a pulse on personal finance sentiments, finding that Americans have developed self-reported “bad habits.”The most common mistake ? Of the 76 percent of Americans who say they made financial mistakes in 2022, 40 percent cite not saving any money as the leading bad habit. Other mistakes included relying on credit when they didn’t have enough cash (35 percent), not sticking to their budget (33 percent) and paying for subscriptions they never used (31 percent). Bad decisions turn into regular bad habits that have created a negative impact on their financial situation, according to Credit Karma’s survey. More than two-thirds of Americans’ finances did not improve or stayed the same throughout the year. While financial mistakes varied across generations, Boomers (52 percent) and Gen X (43 percent) were the most likely generations to report their financial situation did. not improve in 2022, while Gen Z and Millennials’ finances thrive with 38 percent of Gen Z respondents saying their financial situation improved in the past year, along with 45 percent of Millennials. Still, Gen Z respondents were revealed as the most like to stress shop, with 41 percent saying they shop online when they feel stressed — more than any other generation. Millennials, however, are the most likely to shop online late at night (32 percent), while Boomers are the most likely to use credit for purchases when they do not have enough cash in their account (46 percent). difficult and unpredictable,” said Courtney Alev, consumer financial advocate at Credit Karma, “with significant inflation, a volatile stock market and rising interest rates, which has thrown many people’s finances for a loop.”Story continues“The good news is that we ‘re approaching the new year, which gives consumers the perfect opportunity to reflect on the past 12 months and make a plan for their money in the new year. Outside of breaking bad habits, I think 2023 is going to be all about getting back to the basics for consumers, including making a budget, saving money and spending less so people can pay down debt and set themselves up for long-term financial success, Alev said. According to the company’s survey, nearly three-fourths of Americans plan to stick to financial resolutions in the new year. Sticking to the basics, 58 percent of respondents said they will resolve to save more money, 48 percent said they will spend less and 42 percent said they will stick to a budget as decided. Thirty-four percent of Gen Z respondents said their financial new year’s resolution is to get a new job. Click here to read the full article.

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