Americans prepare for another Tough Year Financially.

The end of the year is a time when Americans traditionally make resolutions for behavior they will adopt or goals they will meet in the year ahead. As 2012 begins fewer than two in five American adults say they will make positive financial changes in the coming year, including paying down their level of debt (39%) and saving more money (36%). These relatively low numbers may be a sign that Americans expect another difficult year financially. In fact, only 23% of U.S. adults say they expect the economy to improve in the year ahead, which is down from 29% who said so one year ago. Rather, 29% say they expect the economy will get worse in 2012 while 47% expect it will stay the same.

There has been plenty of reporting on Americans’ financial concerns for the past several years. However, looking at Americans’ current expectations for both their own finances as well as for the state of the nation, it seems that the bad news may not be over yet. Some of the results include:

Fewer Americans plan to pay down their level of debt in 2012 than said so in the past two years (39% now compared to between 41% and 45% previously);

Only 36% say they will save more in the year ahead, compared to 40% who said so last year and 42% who said so in 2009;

One in six now say both that they will get rid of one or more credit cards (16%) and save more for retirement (16%) in 2012, whereas larger numbers (between 21% and 24%) expected to do both of those items in previous years;

Only one in ten now expect to undertake home improvements to increase the value of their home (11%), which is another drop from 2010 and 2011;

Fewer than one in ten say they will make less risky investments (5%) or take out a home equity line of credit (2%) in 2012; and,

Almost one quarter of Americans say they don’t expect to do anything differently financially in 2012 (23%).

While none of this is good news for those looking for a sign of economic improvement, there is one bright spot: fewer Americans say they will cut back their household spending in 2012 (45%) than said so last year (49%) or the previous year (55%).

So What?

Americans continue to face difficult economic times and the New Year may not provide a totally clean slate financially, but there are some bright spots when Americans discuss their expectations. Fewer U.S. adults now say that they will cut back their household spending in the year ahead. This is positive news for the millions who rely on the retail, dining and entertainment industries, and may be small sign that Americans are ready to move on from the harsh times of the past several years.

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