Americans redefine financial success as debt-free living

Consumers are embracing a new definition of financial success built on resilience and debt-free living, according to KeyBank’s annual Financial Mobility Survey.

The recently released survey found that Americans are recalibrating their approach to money management, prioritizing financial freedom and stability over traditional milestones. Nearly three in four (74%) respondents said that being debt-free is an important milestone in their definition of financial success.

Even as 68% of Americans report feeling financial stress, up sharply from 50% in 2024, many are channeling that pressure into purposeful financial planning and long-term resilience. One in three (35%) respondents said they feel in control of, or are proud of, how they manage their money.

“The financial landscape for Americans is shifting in profound ways,” said Daniel Brown, executive vice president and director of Consumer Product Management at KeyBank. “It’s showing that the measure of success is not wealth alone, but also the ability to live debt-free and prepare for what’s ahead.”

KeyBank’s survey, which polled more than 1,000 adults across the U.S., explored spending and savings habits, financial confidence, stress levels, resiliency and attitudes toward debt and economic uncertainty.

Key findings include:

Emergency readiness is declining as costs rise: Over the past six years, Americans’ confidence in handling an unexpected $2,000 expense has eroded. One in four (25%) say they could not come up with that amount if needed, up from 19% in 2024. Gen X was the most affected, with 36% saying they would be unable to cover such an expense.

Traditional milestones take a back seat: More than half (53%) of consumers said paying for experiences or lifestyle goals was less of a priority than a year ago. Similarly, 39% said buying a home or getting married has become less important. Still, 55% continue to view homeownership as a “very important” part of financial success.

Fewer Americans feel financially successful: Only 39% of respondents said they feel more financially successful than five years ago. Among those who feel less successful (22%), rising living costs and inflation (71%), economic uncertainty (45%), and job changes or burnout (26%) were cited as primary factors.

Gen Z is redefining success: Younger generations are living on their own terms, with just 13% of Gen Z pursuing traditional milestones. About one-third said they have decided against buying a home (33%), getting married (33%), having children (34%), or pursuing higher education (34%), saying those no longer align with their definition of success.

Generational contrasts are stark: More than a quarter (28%) of Gen Z respondents said their approach to money is “I’ll figure it out,” more than any other generation. Meanwhile, 16% of Gen X respondents said they “need a financial miracle,” the highest among all age groups.

The survey was conducted online by Schmidt Market Research in July, polling 1,004 Americans, ages 18-70.