In 2020, Millennials, Generation X expect to make more money while Boomers shave debt

In 2020, Millennials, Generation X expect to make more money while Boomers shave debt

January 16, 2020

 (Photo: GETTY IMAGES)

If you doubt your financial situation is going to improve in 2020, you’re not alone.

More than half of U.S. adults are skeptical that their personal finances will get better this year, according to a new survey of 2,634 adults  from financial website Bankrate.com. 

Among that group, 41% said their finances will mirror what they were in 2019, while 16% believe they will get worse.

“Those not expecting their finances to improve this year are far more likely to say its because they’ll stay the same … rather than deteriorate,” says Greg McBride,  Bankrate.com’s chief financial analyst. “That’s consistent with an environment where unemployment is low and people are seeing pay increases.”

Wages brighten outlook for some 

Improving wages are a key reason why 43% of Americans said that their personal financial forecast should improve this year.

Nearly half said that will be due to heftier paychecks. Meanwhile, 42% said they will get a boost because they expect to carry less debt.

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Among millennials in their mid 20’s through their late thirties, 56% expected their personal finances to get a boost in the new year, while 44% of people 40 to 55 said the same. Only 31% of baby boomers, between the ages of 56 and 74, felt as hopeful.

While 58% of millennials and 51% of Generation Xers said higher income would bolster their pocketbooks, 54% of older Americans said their finances would get better because they expect to owe less. 

Goal oriented 

Whatever their outlook, 83% of those surveyed said they had at least one financial objective they wanted to reach this year. 

Reducing personal debt was number one, cited by 22% of those polled. But 16% intend to budget better, and 12% want to build up their rainy day funds.

“It’s not just our waistlines that Americans want to shape up in the new year,” McBride says, “but personal finances rank right up there. The beginning of the year represents that fresh start people want to get serious about things like paying down debt, saving more, or spending more sensibly.”

 (Photo: Getty Images)

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