Work, wellness and wealth: A look at financial mobility in America

Drew Yergensen 

Between rumors of a recession, interest rate hikes, inflation and economic uncertainty, Americans are frequently faced with a choice to prioritize their financial freedom or preferred lifestyle. Americans’ mindsets are focused on their happiness and personal lives to help them feel fulfilled, while still anticipating they will face economic challenges that impact their saving and spending.

The KeyBank 2024 Financial Mobility Survey polled Americans about the state of their financial lives and attitudes and found that money isn’t buying happiness in America, but the share of Americans who are spending more and saving less has nearly doubled since 2021.

A resounding 66 percent of Americans would rather work a job they love with a lower-paying salary than work a job they hate with a higher-paying salary (34 percent). Additionally, in 2023, 25 percent of Americans said they’re spending more and saving less compared to 2022 (15 percent) and 2021 (13 percent). The spending is not toward dining out or vacations, but rather the everyday cost of living. In fact, 59 percent of Americans are cutting back on nonessential items due to the increasing cost of living in America.

Other findings include:

A Shift in Lifestyle Priorities

Amid a tighter economic landscape and labor market, Americans continue to prioritize balance and well-being in their professional, personal and financial lives. This year’s survey revealed that Americans are in favor of a soft-life culture that defines success based on happiness, contentment and fulfillment versus hustle culture, which defines success based on wealth, status and achievement.

• Nearly three in four (72 percent) Americans would rather define success based on a soft-life culture focused on happiness, contentment and fulfillment, with equal shares of males and females (37 percent each) agreeing that it promotes a healthier and happier lifestyle.
• More than half of Americans (54 percent) say a hustle culture that defines success based on wealth, status and achievement can lead to burnout and negatively impact well-being. Nevertheless, one-third of males (33 percent) and one-quarter of females (26 percent) identify with hustle culture.

Cost of Living in America

The rising cost of living is becoming an increasing concern across the U.S., with Americans fighting off rising inflation and higher prices on goods and services. As a result, consumers from every generation are cutting back on spending and even dipping into their savings. With no sign of costs leveling out, Americans will need to learn how to balance an affordable lifestyle while maintaining basic, everyday needs.

• Increased Costs, Increased Stress. Nearly one-third (30 percent) of all Americans say they feel daily financial stress related to the cost of living in America. However, women (35 percent) are more likely than men (24 percent) to feel financial stress on a daily basis related to the cost of living in America.
• Every generation is feeling the strain of the cost of living. This begs the question, what will an affordable lifestyle look like in the next five years? More than three in four (77 percent) Americans across all generations believe the cost of living in America has gotten worse in the past five years.

Homeownership Attainability

Of those who recently purchased a home or are currently in the market, 40 percent said that inflation is the top purchasing influence. Of those people (20 percent) who are not currently in the market to purchase a home and haven’t purchased one in the past year, 69 percent believe the dream of owning a home is not very attainable.

At a time when home ownership feels unattainable to many, some younger Americans are choosing to make financial changes in order to achieve the dream, putting money aside, creating budgets and reducing spending to buy a home and to feel more confident in their financial approach.

• As younger generations start to hit life milestones, it is possible societal pressures are pushing their interest towards homebuying. The average age of Americans in the market for a home is 36, and to help with the dream of owning a home, they are spending less and saving more (45 percent).
• Financial Confidence: Almost three fourths (71 percent) of new homeowners within the last 12 months believe they could come up with $2,000 within a month if needed and are very/somewhat confident in the ability to grow their finances (86 percent).
• Homeownership also comes with an added expense, as half of new homeowners (51 percent) expect to use more of their savings next year as compared to those in the market for a home (45 percent) or who don’t own a house (35 percent).

Tips for Prioritizing Financial and Personal Wellness

Consumers looking to the year ahead may be wondering whether they can truly have it all. Here are some tips for maintaining healthy financial habits and building financial resiliency in the new year — without sacrificing personal and professional goals and ultimate happiness.

• Take an honest look at your 2023 financial habits to set a roadmap for 2024. The survey found that more Americans would rather share their recent Google search history (57 percent) than their monthly credit card statement (43 percent). If you’re similarly reluctant to review your financial decisions from the past year, now is as good a time as any to do so.
• Connect with a financial professional early and often. Faced with the rising cost of living, Americans may find it more challenging to pursue a desired lifestyle while meeting everyday financial needs. In addition to maintaining monthly budgets and day-to-day expenses, talk to your financial professional about staying on track with longer term goals — such as purchasing a home or planning for retirement.
• Meet with a mortgage loan officer to unlock the keys to homeownership. The homebuying process can seem intimidating, especially in a challenging economic environment. If purchasing a home is one of your goals in 2024, consult with your financial professional or mortgage loan officer to determine the programs and pathways to homeownership that make the most sense for your goals and your budget.

Drew Yergensen is the market president and commercial banking leader with KeyBank in Utah.

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