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We’re still several weeks away from Thanksgiving, but as that holiday nears, attention on the December holidays increases and with that comes chatter about New Year’s resolutions. Advisors are well-versed in that subject because it’s annual tradition for folks to make pledges to do better financially in the new year and that takes on many forms.
For some people, it’s resolving to pare debt and/or dial back on discretionary spending. For others, financial resolutions mean allocating more cash to investments and on a related note, many folks are aiming to bolster retirement savings when the new year arrives. That’s a good priority to have because data confirm many Americans across a variety of age groups are trailing in the retirement department.
Being a pragmatic bunch, advisors also know that resolutions, even those of the financial variety, often go unrealized. Broadly speaking, that appears to have been the case this year, but optimism abounds with many folks viewing 2026 as the year in which they achieve some important financial objectives. Advisors should acknowledge that optimism and the role they play in helping clients get to where they want to be.
Vanguard Survey Holds Clues
Vanguard’s latest consumer finance survey indicates that while three-quarters of Americans fell short saving and spending goals this year, 84% are going back to the financial resolution well in 2026.
What’s important to advisors is that those resolutions aren’t uniform across various demographics. For example, Vanguard points out that nearly 30% of baby boomers are worried about surprise expenses while 22% of millennials are concerned they’re not making enough money. Fifteen percent of Gen Zers are worried about living beyond their means.
“Americans are focused on building emergency funds and saving for short-term goals, and they need information and tools to make smarter savings decisions so they don’t fall short of their resolutions,” said Matt Benchener, Managing Director of Vanguard’s Personal Investor business.
The Vanguard study also indicates that some respondents (18%) are feeling confident about personal finances heading into next year while some (16%) are grappling with uncertainty.
“Despite these feelings, they are committed to improving their financial fitness. Keeping up with the cost of living (26%) and being prepared for emergencies or unexpected expenses (24%) are their top motivators,” adds Vanguard.
Let’s Talk About It
Another encouraging sign is that Americans, particularly those in younger age groups, are increasing comfortable discussing finances, indicating they’re eschewing the “taboo” label of bygone eras.
“Fortunately, most Americans (83%) have someone they feel comfortable speaking with about their financial goals or challenges, with partners/spouses and family topping the list,” adds Vanguard.
That’s progress, particularly on the spousal front, but those looking to achieve financial goals next year should be having conversations with advisors and if you’re married, make sure your better half is part of and active in that process.
Related: Inside the UHNW Paradox: The More Wealth, the Less They Talk About Passing It On