If there's one thing Americans can agree on as 2026 begins, it's that they want to owe less money. According to the Motley Fool Money Financial New Year's Resolution Report, paying off debt is the number-one financial resolution for the year, with one in four adults citing it as their top priority.
The findings paint a picture of a nation still grappling with the financial aftershocks of inflation, despite recent progress on price stability. And while the resolve to improve finances is strong—nearly two-thirds of Americans are considering a financial resolution for 2026—confidence in actually following through remains surprisingly weak.
The Top Five Financial Resolutions
Here's how Americans ranked their financial priorities heading into 2026:
- Paying off debt: 25%
- Saving for a major life milestone (home, wedding, car): 16%
- Increasing income: 9%
- Saving for retirement: 9%
- Reducing spending: 9%
The dominance of debt payoff as the top goal likely reflects the cumulative burden of credit card balances built up during the high-inflation period of 2022-2024. With credit card debt hitting record levels above $1.2 trillion nationally, many households are feeling the weight of monthly interest payments.
What Different Generations Want
The survey reveals striking differences in how different age groups approach their financial goals:
Gen Z is focused on building the foundations of financial adulthood. Saving for major life milestones leads their priorities at 23%, followed by paying off debt at 19%. Notably, 11% cited investing in the stock market as a top goal—reflecting this generation's comfort with investment platforms and their longer time horizon.
Millennials continue to carry significant debt burdens, with 26% prioritizing debt payoff. Saving for large purchases came in at 10%, as many in this generation navigate home ownership and family-building years.
Gen X is increasingly focused on retirement, with 14% emphasizing boosting retirement savings. Debt payoff remains the top priority at 28%, as this generation juggles peak earning years with college costs and aging parents.
Baby Boomers split their focus between retirement savings at 18% and debt payoff at 24%. For this generation, the urgency of retirement readiness is paramount.
The Confidence Gap
Perhaps the most telling finding in the survey is the gap between resolution-making and resolution-keeping. Only 43% of adults think they'll actually stick to their financial resolutions in 2026.
Confidence varies dramatically by generation:
- Baby Boomers: 60% confident
- Gen X: 48% confident
- Millennials: 38% confident
- Gen Z: 30% confident
The pattern is intuitive: older generations have more financial stability and established habits, making it easier to achieve their goals. Younger generations face more volatility in income, expenses, and life circumstances.
Why Inflation Still Looms Large
Despite significant progress on inflation—the Consumer Price Index has fallen from its 2022 peak of 9.1% to 2.7%—45% of Americans report that rising everyday prices remain their top financial concern.
The persistence of inflation anxiety even as headline numbers improve reflects a simple reality: prices that rose during the inflationary surge haven't come back down. A cart of groceries that cost $150 in 2021 still costs more today, even if the rate of increase has slowed. For many households, the damage has been done.
Expert Tips for Actually Keeping Your Resolutions
Financial advisors recommend several strategies for turning 2026 resolutions into reality:
- Automate everything: Set up automatic transfers to savings and investment accounts so good behavior happens without requiring daily willpower.
- Use high-yield savings: With rates still near 5% at many online banks, idle cash can work harder without any additional risk.
- Consider a balance transfer: If credit card debt is your target, a 0% APR balance transfer card can give you breathing room to pay down principal.
- Start small: Committing to save an extra $50 per paycheck is more sustainable than trying to overhaul your entire financial life at once.
The Bottom Line
The surge in financial resolution-making—64% of Americans are considering one for 2026, up from 56% who made one last year—suggests a nation taking its financial health seriously. The challenge now is execution.
Whether you're part of the 25% focused on debt payoff or the 16% saving for a major milestone, the key to success in 2026 will be turning good intentions into systematic action. Start small, automate what you can, and remember: the best financial resolution is one you actually keep.
