Despite a tough financial year in 2025, many Americans are optimistic about the year ahead. A recent Intuit Credit Karma study found that although 49% of Americans believe that their financial situation worsened in 2025, 45% feel confident in their ability to reach their 2026 financial goals. One way they’re ensuring this is by reflecting on the missteps they made over the past year, and looking for ways to course-correct. Here are their top financial regrets of 2025 — and how to avoid them in 2026. Reg ...

Economic Challenges - In 2025, economic challenges such as tariffs and inflation significantly impacted household finances, with the effective tariff rate on imported goods rising to 11.2% [3] - The inflation rate for 2025 remained around 3%, compounding the financial strain on consumers who have faced increasing prices since 2020 [4] - High interest rates on personal loans, credit cards, and mortgages have persisted, despite modest cuts from the Federal Reserve, further straining consumer budgets [4] Financial Regrets - A Credit Karma survey revealed that nearly half of Americans reported worsening finances over the past year, with 38% regretting not saving enough, 28% citing impulse spending, and 21% having too much high-interest credit card debt [1] - 20% of Americans indicated they fell behind on bills, including mortgages and credit cards, while 19% struggled to afford basic necessities like groceries [5] - A significant portion of consumers (67%) attributed their budget difficulties to rising costs and macroeconomic forces [5] Consumer Behavior - The concept of "doom spending" has emerged, where individuals engage in mindless spending as a coping mechanism for stress or anxiety, with 44% of credit card holders carrying a balance month-to-month [6] - A 2024 Bankrate survey found that 38% of respondents were willing to incur debt for discretionary purchases, indicating a concerning trend in consumer behavior [6] Outlook - Despite the financial challenges, 45% of respondents in the Credit Karma survey expressed optimism about turning their finances around in 2026 and meeting their financial goals [2]