Is Debt-Free the New Luxury? KeyBank Survey Explores

As financial stress rises, 3 in 4 define financial success as debt-free living. Still, 1 in 3 feel in control of their money management, finds the new survey.

CLEVELAND, OH / ACCESS Newswire / November 10, 2025 / Consumers are embracing a rewritten definition of financial success built on resilience, according to KeyBank's annual Financial Mobility Survey, released today. The survey found that consumers are recalibrating their approach to money management to prioritize debt-free living over milestone chasing. In particular, approximately 3 in 4 (74%) Americans agree that debt-free living is an important milestone in their definition of financial success.

KeyBank also found that -- even as 68% of Americans feel financial stress, up from 50% in 2024 -- many are turning that pressure into purpose and building resilience for the long term. In fact, 1 in 3 (35%) Americans feel in control or proud of how they manage their money.

The KeyBank Financial Mobility Survey polled more than 1,000 Americans to gain insights into respondents' spending and savings habits, levels of financial confidence, stress, resiliency, economic sentiment, and the impacts of debt.

Highlights include:

• Americans' emergency readiness drops as costs climb: Over the past six years, day-to-day price increases and financial stress have eroded Americans' confidence in their ability to cover an unexpected $2,000 expense. Today, one in four (25%) Americans are certain they cannot come up with $2,000 if an unexpected need arises compared to 19% in 2024. The most affected generation is Gen X, with 36% saying they could not come up with the money.

• Traditional milestones have taken a back seat … for now: 53% of consumers say that paying for experiences or a certain lifestyle was less of a priority than one year ago, and 39% said both buying a home and getting married were less of a priority than one year ago. Still, more than half (55%) consider homeownership a "very important" part of their definition of success.

• The feeling of success has decreased: Only 39% of Americans report feeling more financially successful than they did five years ago. For those who felt less successful (22%), it was due to the rising cost of living and inflation (71%), economic uncertainty (45%), and job changes or career burnout (26%).

• Younger generations are living on their own terms: Gen Z is rewriting the definition of success, with just 13% saying they're still pursuing traditional milestones. Additionally, 33% of Gen Zers say they have decided against buying a home, 33% have decided against getting married, 34% have decided against having children, and 34% have decided against pursuing a higher education because it no longer fits their definition of success.