Whether you’re a resolution-setter or not, the end of the year can be useful to reflect on the past 12 months and see how you managed your finances. Hopefully, you had a few money wins you can be proud of, even if you also made some mistakes and have a few financial regrets.
Student Loan Hero’s second annual New Year’s survey reveals New Year’s resolution statistics on the most common money regrets of 2016 and the most popular financial goals for 2017. Find out what how your 2016 stacks up, and get some ideas for how to do even better next year.
Top financial regret of 2016: not saving more
What was your biggest financial regret of 2016? Two-thirds of people had a financial regret, selecting one of the six listed. The other third selected “other,” showing that their regret wasn’t listed or that they didn’t have one for the past year.
Among those who chose a regret, the most common was not saving or investing more.
Biggest financial regrets of 2016
- Didn’t save or invest as much as I wanted: 34 percent
- Didn’t pay off as much debt as I wanted: 25 percent
- Spent frivolously (shopping, Netflix, meals): 20 percent
- Made a bad investment: 9 percent
- Didn’t pay my bills on time: 7 percent
- Made a major purchase I couldn’t afford: 5 percent
Respondents chose not saving as their biggest regret of 2016 less frequently than they did in last year’s New Year’s resolution survey.
Hopefully, this indicates that consumers did a better job of saving over the past year — and not that their other money mistakes of the year were more regrettable!
1 in 4 wish they’d paid off more debt
The second-biggest financial concern of the past year was not paying off as much debt as borrowers had wanted to. According to our New Year’s resolution statistics, this was the regret of one in four respondents who selected a listed answer.
Interestingly, these two most common regrets are not necessarily mistakes (like making a bad investment or making an unaffordable purchase). Instead, this 59 percent wish they had done more with their money to get closer to reaching their financial goals.
Following a budget continues to be a challenge for many people. One in five people said their biggest financial regret in 2016 was spending frivolously. Another 5 percent said they bought something they couldn’t afford this year.
Additionally, 7 percent were late on a payment and cited this as their biggest money misstep in 2016.
Top financial resolution for 2017: pay down debt
What is your top financial resolution for 2017? Two-thirds of respondents said they are setting New Year financial resolutions to work toward in 2017.
The other third had no financial resolution for 2017. Older respondents are more likely not to have a money-related resolution. Over half (55 percent) of those who aren’t setting a financial resolution are over 65.
Among those setting a money goal for the new year, the most common resolution is to pay down debts.
Financial resolutions for 2017
- Pay off debt: 30 percent
- Build an emergency fund: 18 percent
- Save for retirement: 15 percent
- Improve my credit: 12 percent
- Buy a house: 12 percent
- Other financial resolution: 12 percent*
The next-most common goals both center on saving. In fact, more than a third of respondents selected one of these savings-related goals — making them a more popular answer than paying down debt.
Slightly more people are focused on building their short-term savings (an emergency fund) than long-term savings (retirement).
*This answer was not an option for the 2015 survey.
This year’s resolutions reflect 2016’s regrets
Many people’s New Year financial resolutions for 2017 have a similar theme to their biggest money regrets of 2016.
Over half of those whose top financial goal is to pay down debts in 2017 say not doing so in 2016 is their biggest money regret of the year.
Among those who regret not saving as much as they wanted to, 44 percent have a savings-related goal to build an emergency fund or contribute more to a retirement account.
For regretters who were negatively impacted by paying a bill late this year, it seems that their credit took a hit. The most popular New Year financial resolution in this group is improving credit.
Goal-setters who aim to buy a home in 2017 most often said they regret spending frivolously; perhaps their lack of self-control led to some missed opportunities to save for a home down payment.
Among respondents who resolved to build an emergency fund in the new year, the biggest regret is making a major purchase they couldn’t afford this year.
Whatever the reason for financial missteps in 2016 or financial goals set for 2017, nearly everyone wants to do more with their money in the new year.
Survey was conducted via Google Consumer Surveys on behalf of Student Loan Hero on November 4, 2016, with a nationally representative sample of 1,013 adults living in the United States and a margin of error of 1.6 percent or lower.
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1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.50% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.49% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on our student loan refinance product.
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3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.48% effective April 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.49% – 7.27%1||Undergrad & Graduate|
|2.49% – 6.65%3||Undergrad & Graduate|
|2.49% – 7.41%4||Undergrad & Graduate|
|2.50% – 6.65%2||Undergrad & Graduate|
|2.49% – 7.11%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|