Only 39% of Americans feel more financially successful than they did five years ago, according to a new KeyBank survey — even as their definition of success has shifted dramatically.
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Traditionally, financial success meant hitting major milestones like buying a home or getting married. Today, that’s changing. The survey found that 53% of Americans say paying for experiences or maintaining a certain lifestyle is less of a priority than a year ago, and 39% say homeownership and marriage have also dropped on their list. Instead, the new benchmark is debt-free living. A striking 74% of Americans now consider being debt-free an essential milestone in their definition of success.
Here’s a closer look at why Americans still feel less successful compared to recent years, and how they can get closer to their new definition of success.
Why Americans Say They’re Falling Behind Financially
Despite the shift in how success is defined, most Americans don’t feel they’re achieving their goals. Rising costs are a major factor.
“As we look at grocery costs, housing costs and utility costs, people are seeing all of that go up,” said Dan Brown, EVP and director of consumer product management at KeyBank. “At the same time, people are seeing living debt-free as an imperative in the ways that people judge financial success. And so those things can be a little bit at odds with each other.”
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Gen Z Feels Confident About Money — Gen X Wants a Miracle
While many Americans are struggling to feel successful, there’s a generational divide. When it comes to how they feel about their financial situation, 28% of Gen Zers believe they’ll “figure it out,” more than any other generation. On the other hand, 16% of Gen Xers said, “I need a financial miracle” — the highest percentage of any generation.
“Gen X are probably viewing success more in terms of homeownership, and obviously, with interest rates being high and household supply being lower than they were three or four years ago, I think that’s probably hitting that cohort a little bit harder than it might for some others,” Brown said.
Meanwhile, 33% of Gen Zers say they have decided against buying a home, so they are not holding themselves to this same standard of “success.”
Debt-Free Living Is the New Financial Goal — Here’s How To Get There
Economic uncertainty and rising costs have made debt-free living the most appealing financial goal.
“Household formation and ownership still continues to be a challenge for some, but debt-free living feels like it’s a little bit more universally [achievable],” Brown said.
While it can be done, it requires intentional changes. Brown recommended opting for more affordable brands when shopping and managing subscriptions so you’re not paying for things you don’t use.
“Overall, I just encourage people to go and seek out advice, either digitally or through financial advisors,” Brown said. “There are experts out there that can really help you assemble information, come up with a strategy and help you feel best positioned for success.”
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This article originally appeared on GOBankingRates.com: Why Americans Feel Less Financially Successful — and How To Change That
