The beginning of each year is a blank canvas to paint new career goals or personal resolutions, whether it’s purchasing your first home, booking international trips, or taming an online shopping addiction. According to Forbes Health/One Poll, 38% of New Year’s resolutions are focused on improving finances.

Here are some trends anticipated to make a significant impact on your finances in 2025.

1. Navigating the homebuying market.

According to Redfin’s 2025 Predictions, home sellers can anticipate a better housing market as a result of increased demand over the past few years. Home prices are expected to rise by 4%, similar to the trends observed in the second half of 2024. Mortgage rates, on the other hand, are projected to remain high, at between 6% and 7%, potentially restricting some prospective buyers. However, with more houses predicted to be available on the market, there could be a significant increase of home sales in 2025. In the end, it’s important to chat with your financial planner or trusted broker to see if purchasing a home is the right decision.

2. To rent or not to rent?

With home prices anticipated to rise over the next year, renting may be a better choice for consumers rather than purchasing a home. However, according to CoStar Group — a leading provider of online real estate marketplaces, information, and analytics — rents are also expected to increase in 2025 and 2026, as a result of the slowdown in housing construction going into 2025. If renting seems like the best option, you should speak with a financial planner to see what steps you can take to prepare for homebuying in the future.

3. Catching the travel bug.

Did you know 58% of global respondents agreed that “experiences are better than material possessions”? This perspective is one that reshaped how often Gen Z travels. In fact, the younger generation is expected to travel as much, if not more, in the new year to maximize their experiences. While it’s clear travel has taken priority over planting roots, this generation should consider budgeting tips to help them do so. One effective budgeting method is the viral “cash stuffing” trend, where a set amount of cash is allocated for bills, groceries, and other miscellaneous expenses to help track spending. Moreover, young travelers can explore inexpensive travel options, such as staying in hostels or booking discounted flights and accommodations in advance, to make the most of their travel dollars.

4. The resurgence of in-person shopping.

Although online shopping remains a popular method for consumers to purchase products, local brick-and-mortar stores are still just as important. The younger generation, in particular, prefers visiting physical stores to explore new brands and products, with 51.9% opting for this method compared to 46% who favor websites. The trend towards in-person shopping is anticipated to grow by 2025, as consumers increasingly appreciate the ability to physically interact with products and staff and enjoy the shopping experience missing from cyberspace. While in-person shopping is making a comeback, it’s important to budget wisely. There are several budgeting and savings tips to help you purchase large ticket items or pay off debt, like the snowball method.

At the end of the day, there’s no way to fully predict the economy. It will always ebb and flow, so it’s important to be flexible and give yourself grace if financial goals or resolutions aren’t met. For more financial savvy tips, visit the Financial Health page at efirstbankblog.com.

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