Nearly One-Third Of Americans Feel Daily Financial Stress

Mon, 22 January 2024  |  consumers economy 

According to the recently released KeyBank 2024 Financial Mobility Survey, a staggering 66% of Americans would choose to work at a job they love even if it paid less than their current salary (34%). At the same time, a quarter of Americans say they're saving less and spending more, up from 13% in 2021 and 15% in 2022. Additionally, 60% of Americans think a recession is underway or will occur soon, suggesting that people are putting their happiness first while preparing for financial difficulties.

Indeed, almost one-third (30%) of poll participants report experiencing daily financial stress as a result of the high cost of living in America, and over half (59%) are reducing their consumption of non-essential items as a result. Furthermore, compared to 43% who would prefer to share their monthly credit card bill, 57% of respondents would prefer to share their recent Google search history. However, 42% of respondents when asked what "Thriving in America" meant to them selected work-life balance.

Following a year of market volatility and uncertainty, the study asked more than one thousand Americans about their priorities and perspective in terms of money, life, and work. See the KeyBank 2024 Financial Mobility Survey Executive Summary for more information on the survey's results.

Daniel Brown, EVP & Director, Consumer Product Management at KeyBank, stated, "We all want to feel fulfilled, and our survey shows that Americans are prioritizing their happiness and personal life over money—but facing inflation, societal shifts, and economic uncertainty, many remain concerned about their financial futures." "As the everyday cost of living increases, many of us will have to make critical lifestyle and financial decisions in the year ahead for not only ourselves, but also our households—balancing our lives outside of work with our financial needs and habits for the long term."

Many Americans support a "soft-life culture," which defines success based on happiness, satisfaction, and fulfillment, as opposed to a "hustle culture," which defines success based on income, prestige, and achievement (36% and 28%, respectively), as more people prioritize their own well-being. However, 56% of Gen Z respondents claim to most relate with the hustling culture right now, indicating a generational divide in priorities and experiences.

Highlights of the survey included:

• Work-life harmony is becoming more and more crucial. Following a yearly pattern, a greater proportion of Americans (63%) said they place a higher priority on work-life balance (compared to a high wage (27%), up from 57% and 33% in 2022.
• This year, more Americans than ever before have taken money out of their savings (51%). The majority of respondents (77%) from all generations felt that the expense of living in America has increased, with Boomers leading the way with 92% of the sample believing this to be the case.
• Over half (57%) of Gen Xers and Millennials believe there will be a recession in the next 12 months. 
• Daily financial stress due to the high cost of living in America is more common in women (35%) than in males (24%).
• Americans are adjusting their spending in order to fulfill their desire of becoming homeowners. Among those who are looking to buy a house, opening a special savings account is the most common way that people save money for a down payment (43%). Nevertheless, 29% of Americans do not currently own a home and do not have any plans to do so in the upcoming year. 
• Just one out of ten respondents said that owning a home is highly attainable.