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, Nov. 10, 2025 /PRNewswire/ -- 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 (NYSE: KEY) 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.
  
  
• The kids are alright; the grandparents are not: 28% of Gen Zers say that their current approach to money is, "I'll figure it out," more than any other generation. On the flip side, 16% of Gen Xers say, "I need a financial miracle," which is the highest of any generation.

"The financial landscape for Americans is shifting in profound ways," said Daniel Brown, EVP & Director, 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. As consumers face rising financial stress, our role as a trusted partner is to help clients navigate uncertainty, uncover new possibilities, and move forward with clarity and confidence."

Valuing Resilience over Riches

The rising cost of living and increased price of everyday items are putting a strain on wallets across households in America.

• Americans are most concerned about day-to-day expenses like groceries (55%), housing costs (35%), and credit card debt (26%). 
  
  
• Cost increases have led 49% of consumers to switch to less expensive brands or services and 41% to reduce subscriptions or memberships. 
  
  
• Even with daily and weekly trade-offs, savings are shrinking year over year – 66% of consumers say they have less money in their savings account this year compared to last. 
  
  
• As rising expenses reshape household budgets, many Americans are cutting back where they can – 58% are spending less and 40% are saving less compared to previous years.

Using BNPL for Near-term Relief

For some, however, pulling back isn't enough. To help sustain their desired lifestyle, many are increasingly relying on financial floats, like Buy Now, Pay Later (BNPL), that blur the line between control and strain.

• More than half (58%) of Americans say they are using BNPL programs, but particularly younger generations such as Gen Z (79%) and Millennials (68%).
• BNPL users report having a slightly less negative personal financial outlook (49%) than non BNPL users (58%).
• In fact, only 10% of BNPL users cite BNPL payments as a top three financial concern.
• Yet even as these tools offer short-term flexibility, nearly three in four (73%) BNPL users still report feeling financially stressed, underscoring the tension between near-term choice and long-term planning.

"For many Americans, rising costs aren't just numbers on a reciept; they represent difficult choices that shape everyday life," said Brown. "Whether it's prioritizing debt reduction or using new financial tools, people are looking for ways to stay in control while navigating an uncertain environment. We know that every financial journey is personal, and our role is to help clients find practical, meaningful steps that fit their circumstances and help them move forward on their financial journeys."

To learn more about the survey's findings, visit the KeyBank 2026 Financial Mobility Survey Executive Summary.

Access KeyBank's financial wellness online resources, including the Financial Wellness Center's Banking 101 curriculum, or meet with a local banker to complete a Key Financial Wellness Review for a more financially confident future.

Methodology
This survey was conducted online by Schmidt Market Research in July 2025, polling 1,004 Americans, ages 18-70. All respondents have sole or shared responsibility for household financial decisions and maintain a checking or savings account. The survey examined respondents' spending and savings habits, levels of financial confidence, stress and resiliency factors, economic sentiment, and debt impacts.

About KeyCorp
In 2025, KeyCorp celebrates its bicentennial, marking 200 years of service to clients and communities from Maine to Alaska. To learn more, visit KeyBank Heritage Center. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at September 30, 2025. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

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SOURCE KeyBank