Here’s What Americans Want for Their Finances in 2023
During the holiday season, people worldwide are filling up their holiday wish lists with the latest Ugg boots and the newest iPhone, but what about the items on Americans’ financial wish lists? According to a recent survey conducted by GOBankingRates, 38% of Americans want inflation to ease substantially, 30% want gas prices to drop substantially, 24% want housing to become more affordable and 8% want the stock market or crypto to recover.
While the financial situation right now might seem bleak, experts have some insight regarding Americans’ finances in the new year. Here’s a further look at the survey results and expert insights so you can be financially prepared for any economic trends that occur in the coming months.
Survey: Majority of Americans Want Inflation To Ease Substantially
Thirty-eight percent of Americans are hoping to see inflation go down in 2023, according to GOBankingRates’ survey.
While the biggest majority of respondents are hoping to see a general decrease in prices, some Americans have other priorities on their financial wish list. After feeling the weight of higher-than-average gas prices this year, 30% are hoping to see gas prices drop substantially in the new year. Many Americans are also feeling the squeeze on their rent or mortgage, as 24% would like housing to become more affordable. In the smallest group of respondents, 8% of Americans are looking for the stock market or crypto to recover.
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Middle-Aged and Senior Americans Most Worried About Inflation and the Stock Market
Out of all the survey respondents, Americans over 45 are most worried about inflation. Nearly half of those hoping for inflation relief in the new year fall into this age bracket. Forty-six percent of respondents in this category are made up of adults aged 55-64, and 43% are over 65.
Seniors are the age group most concerned about the stock market, as 15% of respondents hoping for relief in this area are over 65. Conversely, a mere 5% of Americans between the ages of 18-24 are concerned about stock market recovery.
Younger Americans and Women Most Concerned About Housing Affordability
Americans between the ages of 18-24 make up the majority of those worried about housing affordability in 2023, as 31% of respondents fell into this age bracket. Conversely, a mere 11% of Americans over 65 are looking for relief in this category.
Women are also more worried about housing affordability than men. Nearly 30% of women responded that they would like to see more affordable housing in the new year. Only 19% of men responded in this way.
Top Financial Goal for 2023: Save More Money
In GOBankingRates’ survey, respondents were asked what their top financial goal is for the new year. The biggest majority, 28%, would like to save more money. In comparison, 23% are hoping to boost their income, 11% want to stick to a budget, 5% are planning for retirement and 4% want to invest more in stocks or crypto.
40% of Americans Plan To Buy a Car
A big number of Americans are looking to purchase a new car in 2023. According to the survey, 40% of respondents want to make this milestone purchase in the new year. In comparison, 26% are taking an expensive vacation, 24% are planning to buy a home, 13% are hoping to expand their family, 8% intend to retire and 8% are paying for a wedding.
In light of these survey results, here’s what financial experts have to say on the expected economic state of 2023 and the best moves to make to be financially prepared.
Experts: Inflation Is Likely To Decrease in 2023
Some might sigh with relief at the news that inflation will probably go down in the new year.
“The inflation rate in 2023 is likely to be dramatically less than what was experienced in 2022,” said Dean Kaplan, president of The Kaplan Group. “Consumer Price Index inflation in the U.S. will be approximately 8% this year and may decline to approximately 3% next year. While the inflation rate will decline, [American consumers in 2023] will still be experiencing prices that are approximately 10% higher compared to 2021.”
Housing Costs Also Expected To Decrease
While housing prices are predicted to decline in the new year, high mortgage rates may delay Americans from investing in a new home.
“While housing prices will continue to come down, mortgage rates are now so high that many would-be buyers will continue to be locked out from a new home,” said Scott Lieberman, the founder of TouchdownMoney.com. “This forces this huge group of people to rent (sky-high demand), which increases rental prices due to the limited supply of affordable housing.”
The Stock Market Will Likely Go Down In the Coming Months
Those hoping for a stock market rise will need to be patient next year, as the market is predicted to go down before it goes back up.
“Unfortunately, the consensus is the stock market will go lower before it goes higher,” Kaplan said. “If we have a mild recession in the coming months, the stock market could rebound in the second half of 2023. If it’s a hard landing, that rebound will be delayed.”
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