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Brits’ Financial Resolutions for 2025

Written by
The Editorial Team
Experts in personal finance, insurance and utilities
Posted
23 JANUARY 2025
6 min read
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Brits’ Financial Resolutions for 2025

At the start of a New Year, many Brits are turning their thoughts to financial well-being and setting goals to improve their money management habits in 2025. In fact, according to recent statistics, around two-thirds of people in the UK make New Year’s resolutions. But how many are incorporating financial wellness and money management into these future goals? 

We surveyed over 6,800 Brits to discover the most common financial resolutions for 2025.  The credit card team at Compare the Market also provide some top tips to help you achieve these goals and more in the new year.

The most common financial resolutions for 2025

From joining the gym to learning a new language or travelling more, many Brits set resolutions to kick off the start of a new year. Many people, however, see the New Year as an opportunity to improve their finances. In fact, 86% of the Brits we surveyed have financial goals for 2025, so we wanted to find out what the most common resolutions are.

Rank Resolution % of people who say this is one of their financial resolutions
1 Building up a rainy day fund 18%
2 Reducing debt 17%
3 Saving up to go travelling 16%
4 Starting a savings plan 13%
Improving my credit score 13%
5 Buying a car 12%
6 Planning for retirement 10%
Paying off my debt completely (not including student loan or mortgage) 10%
Buying a property (house, flat, etc.) 10%
Creating and sticking to a detailed budget 10%

*Table only shows the top 10 results, ranked by highest percentage, excluding those that did not have a financial goal for 2025.

1. Building up a rainy day fund

The top financial resolution for Brits is building up a rainy day fund, with 18% - almost one in five, naming this as a goal. This focus on financial security and preparedness suggests a desire to protect against unexpected expenses - a trend perhaps influenced by rising living costs.

The credit card team at Compare the Market says, "Our survey from June 2024 found that over one in 10 Brits report having no savings. So, for those looking to improve their financial situation next year, starting a rainy day fund is a great first step. This fund can help you handle sudden expenses, such as car repairs, or broken appliances, and prevent financial stress. For example, the average UK driver pays between £1300 and £1600 for car repairs, fuel and maintenance per year.
     
“When you're ready to open a savings account for your rainy day fund, whether it’s at the start of the year or later down the line, take the time to compare your options. An instant-access account is a good starting point, as it lets you access funds easily without locking them in a fixed-rate account - there is the potential to earn some interest as well. Make sure to read the account terms carefully, looking at the conditions like the number of allowable withdrawals per year, so you can choose an account that best meets your needs."

2. Reducing debt

Reducing debt follows closely in second place, with 17% of respondents, highlighting a common wish to manage or eradicate financial burdens. With high interest rates and rising personal debt levels, this goal resonates with those looking to improve financial freedom and stability.

The credit card team says, “If your goal is to reduce debt in 2025, start by getting a clear overview of your finances. Start by making a list of any debts you may have, as well as a list of all upcoming expenses, such as rent or mortgage payments, loans, credit cards, subscriptions, utility bills, daily essentials like groceries etc. Using bank statements can help ensure that nothing is overlooked.

Next, create a detailed budget to track income and expenses, so you can identify areas to cut costs. If you have multiple repayments to manage, such as loans, credit cards or overdrafts, consolidating debts into one loan may simplify things with one monthly payment. However, it’s important to weigh up all the options, to ensure you don’t face any penalties for early repayment, or higher overall costs if the loan term is longer. If you decide debt consolidation is the right step for you, ensure you avoid any new debt to help you stay on track.” 

3. Saving up to go travelling 

Saving up to go travelling ranks third, with 16% reporting this as a resolution for the new year. For many, travel is seen as an opportunity to recharge, gain fresh perspectives and learn about different cultures and parts of the world. However, as it can be costly, planning ahead and budgeting carefully can help make this goal a reality in 2025.

The credit card team says: "When saving for travel, it can be helpful to create a budget, not only for flights, accommodation, insurance, and meals, but also for other expenses like activities and excursions. Once you have an idea of expected costs, you can set a monthly savings goal to set aside.

“You could set up a standing order to automatically transfer funds into your travel savings, or add money as you go. Many banking apps also offer savings goal features that can help you track your progress and ensure you’re consistently putting away enough each month to reach your target."

The next most common financial resolution is starting a savings plan (13%), which points to a desire for financial management and building wealth or achieving long-term goals. Improving credit scores also sits at 13%, underscoring the importance of maintaining financial credibility, especially as it can impact future financial opportunities like buying property or securing better loan terms. One in 10 Brits are looking to buy a property in 2025.

As you start to prepare, a mortgage calculator can be a useful tool to help you start planning, as it will show you how much you’re able to borrow.

Brits’ financial resolutions by generation

Financial goals and priorities can vary greatly depending on your age and life stage. Here's a breakdown of what matters most to different generations in Britain:

  • Gen Z (aged 16 to 27): The most common financial resolution for Gen Z is saving up to go travelling, with 17% saying this is their goal. Following this, it’s buying a car and starting a savings plan, which were both selected as financial resolutions by 16% of respondents. Buying a car can give people a feeling of independence - a milestone that could be expected for this age group. It’s great to see a portion of the younger generation are prioritising long-term financial health by starting a savings plan.
  • Millennials (aged 28 to 43): For Millennials, the main goal is reducing debt, with just under a quarter (23%) choosing this as a financial resolution for 2025. Some Millennials may carry debt from student loans, credit cards, or mortgages, so addressing these challenges can be a step toward building a stable and independent financial future. Building up a rainy day fund ranks next (21%), followed by improving their credit score (18%).
  • Gen X (aged 44 to 59): For Gen X, the top financial resolutions are building up a rainy day fund and reducing debt, with both goals tied in the ranking (20%). This focus on financial security and debt reduction reflects Gen X’s life stage, as many are likely preparing for retirement or supporting family expenses, making financial stability vital. A notable 19% of this age group, however, report having no financial resolutions.
  • Baby Boomers (60 to 78): In the Baby Boom Generation, a significant portion - 41% - say they have no financial resolutions for 2025, likely due to many being retired or nearing retirement and living on fixed incomes. For those who do set goals, the top resolution is building up a rainy day fund (19%), which aligns with the need to manage unexpected expenses without affecting retirement savings. Saving up to travel is the third most common goal (15%), indicating that this generation is perhaps aiming to make the most of their retirement years through travel.
  • The Silent Generation (aged 78+): Among the Silent Generation, the majority - 57% - report having no financial resolutions for 2025, likely due to being in retirement and focusing on stable spending rather than active saving or debt reduction. For those who do have financial goals, building up a rainy day fund (19%) is an aim, as older adults may want to be prepared for unforeseen living costs. The third most common goal is buying a car (11%), possibly indicating a need for reliable transport. 

How can financial resolutions be beneficial?

While 14% of Brits didn’t plan to set any financial resolutions, establishing even simple financial goals can have significant benefits for personal financial health. If you’re debating your priorities ahead of the New Year, we have some guidance on why setting financial resolutions can be beneficial. 

Creating positive financial habits 

Financial resolutions create a framework to help develop better money habits, for example by consciously tracking spending, identifying areas for saving, and building positive routines around money management. By setting specific goals, like creating an emergency fund or reducing debt, you can focus on small steps that improve your financial health over time. 

Taking control of your money

Financial resolutions also help you to feel more confident with your finances. This confidence can help you outline your goals, timelines, and strategies. Thorough planning makes it easier to prioritise expenses, save for future goals, and navigate unexpected costs. By actively planning, you are better prepared to handle life’s financial demands, such as home repairs, medical expenses, or travel, without compromising your financial stability. 

Reducing money-related stress

Lastly, financial resolutions can significantly reduce financial stress. Knowing that there is a plan in place for managing finances can alleviate the anxiety often associated with uncertainty about money. Even small resolutions, like setting aside monthly savings or paying down a particular debt, provide a sense of control and progress, which can improve overall well-being and financial confidence.

The content written in this article is for information purposes only and should not be taken as financial advice. If you require support on the products discussed here, please speak to your bank/lender or seek the advice of an independent professional financial advisor. We also have more information on our Customer Support Hub.

Methodology

Data was collected from a survey of 6,803 UK residents, conducted in September 2024.