One-third of Americans feel daily anxiety due
to debt, but are closer to their money goals than financial stress
indicates
CLEVELAND, Jan. 14,
2025 /PRNewswire/ -- Financial imposter syndrome
refers to the self-doubt many people feel when it comes to their
financial skills and money moves versus the actual reality of their
financial picture. While Americans report they currently feel
financial stress, KeyBank's annual Financial Mobility
Survey, released today, found that Americans are closer to
their personal financial comfort goals than they may
realize.
KeyBank found that, though many Americans are feeling
anxious that they're falling financially behind, they do have solid
plans for their finances and are making the right money moves.
While half (50%) of Americans say they feel financial stress, 45%
of respondents are certain they could come up with $2,000 if an unexpected need arose within the
next month.
The survey polled more than 1,000 Americans to gain insight into
respondents' spending and savings habits, levels of financial
confidence, stress, resiliency, economic sentiment, and the impacts
of debt.
Financial imposter syndrome survey highlights include:
- Americans are stressed about debt: 33% say they
often feel stressed or anxious about their debt situation. Yet, 2
in 5 (37%) say they need to pay down less than $5,000 to relieve this stress. By the same token,
34% of Americans say they are confident they could come up with
$5,000 if they needed to.
- Despite stress, most Americans are meeting their monthly
payments: 70% are confident they can pay off their credit
card every month and 87% are confident in meeting monthly rent or
mortgage payments. Moreover, 44% of Americans say they do not have
credit card debt.
- Gen Z grows confident: Even though 63% of Gen Z
respondents feel financially stressed, nearly three in four (73%)
report they're moving closer to having enough to live
comfortably.
- Homeownership continues to feel unattainable for
most: 46% of respondents who do not own a home say that
homeownership is not attainable for their families, up from 39%
last year. However, to help combat that, 23% of survey respondents
say understanding special purpose credit programs would increase
their confidence in homebuying.
"Despite having solid strategies in place and the economy
showing signs of recovery, Americans still feel a pervasive sense
of scarcity and insecurity when it comes to their financial
well-being," said Daniel Brown, EVP
& Director, Consumer Product Management at KeyBank. "This
mindset often doesn't align with their actual financial health,
which is stronger than they perceive it to be. As a financial
partner, we empower our clients to help them bridge this gap, see
their true financial potential, make decisions with confidence, not
fear, and take pride in the steps they have taken along their
journeys."
Americans Seek Money Breaks to Meet Financial Goals
While many are managing their day-to-day finances effectively,
Americans are seeking those "big money breaks" that could shift
their financial mindset and unlock long-term goals. More than half
(68%) of Americans say they need more money to live comfortably,
and nearly half (45%) are less than $2,500 per month away from reaching that comfort
goal. For some, this could mean taking on a second job or side
hustle to close this gap. Still, just over half (54%) of
respondents say they are moving closer to this goal and 32% say
they already live comfortably.
"For many families, $2,500 a month
isn't just a number – it's a meaningful milestone that can
represent real transformation," said Brown. "We recognize that
financial comfort looks different for everyone, and there's no
one-size-fits-all approach to setting and reaching financial goals.
The first step in the right direction is to assess your budget so
that any goals you set and steps you take are meaningful,
purposeful, and specific to you, rather than anyone else's
definition of success."
Despite this, many Americans still struggle with long-term goals
- and homeownership is at the top of the list. 63% say they are not
confident in their ability to take on a mortgage and 54% say they
are not confident they can contribute more to a retirement account
(e.g., 401(k) or IRA). Accomplishing short-term goals, such as
creating and sticking to a budget, is a significant step in
building financial resiliency for the long term.
As Americans increasingly aim to strike a balance between
personal fulfillment and overall financial well-being, consumers
can access KeyBank's online resources designed to enhance financial
confidence and savvy, including the Financial Wellness
Center's Banking 101 curriculum, or meet with a local banker
to complete a Key Financial Wellness Review to better
understand their financial situation, chart the best path forward
and conquer any financial imposter syndrome they may be
experiencing.
To learn more about the survey's findings, visit the KeyBank
2025 Financial Mobility Survey Executive Summary here:
-
https://www.key.com/content/dam/kco/documents/personal/2025_financial_mobility_survey.pdf
Methodology
This survey was conducted online by
Schmidt Market Research, including1,000 Americans, ages 18-70, with
sole or shared responsibility for household financial decisions,
who own a checking or savings account, who completed the survey in
September 2024. The survey asked
respondents about their financial attitudes, understanding,
awareness and actions over the prior year.
About KeyCorp
KeyCorp's (NYSE: KEY) roots trace
back nearly 200 years to Albany, New
York. Headquartered in Cleveland,
Ohio, Key is one of the nation's largest bank-based
financial services companies, with assets of approximately
$190 billion at September 30, 2024. 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.
CFMA #241209-2914631
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SOURCE KeyBank