The December Mindset

As the year winds down, Americans are taking stock of their finances: 54% say the cost of living rose in 2025, though close to a third feel more optimistic now than they did in January (28%). In December, specifically, 31% report feeling more financial stress than in other months, as a quarter find it difficult to balance holiday expenses with their financial goals (25%). 

Close to a quarter (21%) use December as a financial “checkpoint,” and 21% believe the choices they make this month set the tone for the year ahead. One in 5 say meeting with a financial professional before year-end is important. 

Key findings:

• 54% of Americans say the cost of living rose in 2025, though 28% feel more optimistic now than they did in January.
• 31% report feeling more financial stress in December than in other months, as a quarter find it difficult to balance holiday expenses with their financial goals (25%).
• Close to 2 in 5 of Americans prioritized their financial future by building emergency savings (37%) and contributing to their retirement savings (36%) this year.
• At year’s end, 37% are exploring new job opportunities, updating their résumé or LinkedIn profile (31%) and preparing to ask for a raise or promotion (28%) at work.
• Around a third of Americans set financial goals or resolutions for 2026 and create a financial plan (30%) at year’s end. One in 5 speak with a financial professional to discuss goals, check in on progress, or review their portfolio (20%). 

What people did with their money in 2025

Even as inflation pressures linger, close to 2 in 5 Americans prioritized their financial future by building emergency savings (37%) and contributing to their retirement savings (36%). A third invested in the stock market (34%), paid down debt (32%), and followed a budget (31%) in 2025. 

When it comes to reaching financial goals, 29% say their income met expectations and a quarter reached the financial goals they set for the year (23%).

Americans also take practical financial steps: More than a third (35%) check their credit score or credit report, or gather receipts for deductions such as charitable gifts, medical expenses, or business expenses (31%). Some 27% review and pay down credit card balances, and 22% review or rebalance their investments. 

December reflections on money

In December, many people report shifts in their financial attitudes — becoming more aware of their situation, setting goals, and feeling both stress and motivation. More than a third (35%) say the season makes them more aware of their financial situation, while 30% focus more on gratitude than money. 

At the same time, 29% of people find hidden holiday costs more stressful than buying gifts, and 22% feel added pressure to appear more financially successful. 

December also sparks financial planning behaviors: A quarter feel more financially organized after taking the time to review their accounts (23%), and 22% take stock of whether they hit their money goals. Some 24% hope to have $5,000 saved up by the month’s end. 

Looking ahead, more than 1 in 5 say the holiday season motivates them to plan for the future (21%), and 21% believe their December money habits set the tone for the year ahead.  

Workplace checklist

During the month of December, close to 2 in 5 Americans (37%) plan to set professional goals at work and 32% are increasing their retirement contributions. Another 37% will use remaining PTO or schedule next year’s vacations. More than a third intend to review workplace benefits (36%) and are adjusting their health insurance or flexible spending elections (35%).

At the same time, workers are also thinking about bigger career and financial moves: 37% are exploring new job opportunities, while a third are updating their résumé or LinkedIn profile (31%). More than a quarter are preparing to ask for a raise or promotion (28%), and 22% are looking to negotiate a year-end bonus. 

Windfall wins

When asked how they would use an unexpected $10,000, half of Americans say they would build an emergency fund (53%). More than 2 in 5 would use it to pay down credit card debt (42%) or invest the money for long-term growth (41%). 

Some 41% would use the money to make home improvements or upgrades, while 38% would pay down student loans, mortgage or other major debt. A third would spend it on holiday expenses (36%) or give it away to family, friends or charity (28%).  

End-of-year tax strategies

A quarter of Americans (25%) feel confident in the way they prepare for tax season, though close to a third would take more advantage of tax strategies if they understood them better (30%). 

At the end of the year, a quarter (23%) review their withholdings or overall tax strategy for the coming year and make charitable donations for tax benefits (22%). More than 1 in 5 review or rebalance their investments (21%). Around 20% max out retirement contributions, while 19% adjust W-4 withholdings to avoid a surprise bill in April. 

Others focus on year-end planning by accelerating deductible expenses such as mortgage or property tax payments (18%), harvesting investment gains or losses (17%), deferring income into January (17%), or making last-minute contributions to 529 college savings plans (17%).  

Focus on the future

Around a third of Americans set financial goals or resolutions for 2026 and create a financial plan (30%) at year’s end. One in 5 speak with a financial professional to discuss goals, check in on progress, or review their portfolio (20%).  

Methodology
Empower’s “The December Mindset” study is based on online survey responses from 1,032 Americans ages 18+ from fielded by a third-party provider during September 8-9, 2025.