Is Debt-Free the New Luxury? KeyBank Survey Explores

Core Insights - The KeyBank Financial Mobility Survey reveals a shift in how Americans define financial success, with 74% prioritizing debt-free living over traditional milestones [1][2][5] - Financial stress is prevalent, with 68% of Americans feeling financial pressure, an increase from 50% in 2024 [2][6] - The survey indicates a decline in emergency readiness, with 25% of Americans unable to cover an unexpected $2,000 expense, up from 19% in 2024 [7] Financial Management Trends - Consumers are increasingly concerned about daily expenses, with 55% worried about groceries, 35% about housing costs, and 26% about credit card debt [6] - Traditional milestones such as homeownership and marriage are becoming less prioritized, with 53% of consumers focusing less on lifestyle expenses compared to the previous year [7] - Only 39% of Americans feel more financially successful than five years ago, with rising living costs and inflation cited as primary reasons for decreased success [7] Generational Perspectives - Gen Z is notably redefining success, with only 13% pursuing traditional milestones; 33% have opted against homeownership, marriage, children, and higher education [7] - Younger generations, particularly Gen Z, are more likely to adopt a casual approach to financial management, with 28% stating, "I'll figure it out" [7] Financial Tools and Strategies - Many Americans are turning to Buy Now, Pay Later (BNPL) options for immediate relief, with 58% using such programs, especially among younger generations [13] - Despite the short-term flexibility offered by BNPL, 73% of users still report feeling financially stressed, highlighting the tension between immediate choices and long-term financial planning [13]