Most don’t feel good about their finances in 2024, new study says

DAYTON — The numbers are showing inflation is easing a bit, but most don’t feel good about their finances in the new year, according to a new study by Bankrate.

News Center 7 Consumer Reporter Xavier Hershovitz broke down the findings Tuesday on News Center 7 at 5 p.m.

>>Federal Reserve minutes: Officials saw inflation cooling but were cautious about timing of rate cuts

Diamond Hodges from Dayton told Hershovitz on Tuesday that he is frustrated with the price of just about everything.

“It’s just crazy to me how much the price is going up,” she said.

Hershovitz says she is not alone.

“That same level of optimism does not carry over to how Americans feel about their personal finances,” said Greg McBride, Chief Financial Analyst at Bankrate.

>>Europe’s inflation is up after months of decline. Could it delay interest rate cuts?

The study found that nearly two-thirds of Americans believe their financial situation will not improve in 2024.

More than one in four even think it will get worse.

Why? They say inflation.

“The rate of inflation has come down, but prices haven’t,” said McBride. “And that’s what households are feeling the cumulative effect of two or three years of outsized inflation. (It) has really stretched household budgets.”

People are also dealing with stagnant income, too much debt, or the ability to save, according to McBride.

“All of those have proven to be obstacles and even impediments to making your finances improve,” he said. “In some cases, people say that you know, those impediments can actually cause their finances to deteriorate in the coming year.”

Hershovitz reports that the latest numbers show inflation is cooling. But while the numbers are showing that, McBride says that people are not feeling it.

“A rate of inflation that’s lower just means prices are still going up just not as fast as they had been,” he said. “That’s a little consolation.”

>>I-TEAM: How To Fight Inflation Frustration

Hodges also told Hershovitz on Tuesday that she is still feeling from inflation.

“I’m a server so it comes to a point where I have to just save my money every day to make that big purchase that I want at the end of the week,” she said.

©2024 Cox Media Group