Is Being Debt-Free the New Luxury? KeyBank Survey Finds Changing Money Mindsets

KeyBank’s latest Financial Mobility Survey shows that many Americans are redefining what financial success means — and paying off debt is now at the top of the list. Based on responses from over 1,000 adults across the United States, the survey reveals a shift from traditional wealth markers to prioritising financial stability and freedom from debt. 

Debt-Free Living Beats Status Symbols

A striking 74% of respondents said that living debt-free is a key milestone in their financial success, even ahead of goals like buying a home or achieving a certain lifestyle. This suggests that people are increasingly valuing practical, secure financial footing over “status symbols.”

Financial stress remains widespread — 68% of Americans reported feeling stressed about their finances, up from 50% the year before — yet many are trying to turn that pressure into purposeful habits like cutting back on spending and focusing on saving.

How Americans Are Changing Their Money Habits

The survey highlights several key trends in how people are managing their money:

• Spending Less: Nearly six in ten Americans say they are reducing everyday expenses.
• Savings Patterns: While fewer people feel confident about their finances, many are making deliberate trade-offs to build a financial cushion.
• Reevaluating Priorities: Traditional markers of success — such as buying a home or spending on experiences — are becoming less central as people focus on financial resilience.

About 35% of people feel in control or even proud of how they manage their money, showing a mix of optimism and caution in financial decision-making.

Different Generations, Shared Goals

While the desire to be debt-free is common across age groups, priorities vary:

• Older generations and higher-income groups (earning over $100,000) place equal importance on savings for retirement and being debt-free.
• Younger people are more likely to see debt-free living as a foundation for future financial health and prioritise checking credit scores.

Many Americans are also making everyday financial trade-offs — such as choosing essential items over luxuries — to protect their long-term financial stability.

What This Means

The survey indicates a clear trend away from traditional symbols of wealth (like material purchases) toward achieving a debt-free life and financial security. Even in the face of rising living costs and economic uncertainty, the idea of reducing financial obligations has become a top priority for many Americans.

In a world where prices continue to rise and economic conditions shift, for many consumers being debt-free isn’t just practical — it’s the new marker of financial success.