The KeyBank 2023 Financial Mobility Survey, released today, finds Americans are in a difficult financial position as 55% faced financial challenges over the last year, a substantial increase from the year prior (37%), with more than double the number of respondents flagging their biggest financial faux pas involved budgeting issues (89% vs. 35%, respectively). Yet, even as Americans face these challenges, the majority (85%) strongly desire to become more aware of their financial picture.

"After the rollercoaster of the last three years, Americans are much more aware of the financial challenges they face and are seeking ways to manage their lives better," said Mitch Kime, Executive Vice President of Consumer Client Growth at KeyBank. "More people have experienced a loss of income, fewer feel financially savvy, and burnout is rising among younger respondents. Given the current economic climate, it's no surprise that Americans want to take control of their finances."

The survey polled more than 1,000 Americans on their financial, life and work-related priorities after a year of market volatility and uncertainty, revealing the steps they have taken to become more financially mobile:

Two in five people (42%) reported feeling overwhelmed or burned out regularly, with Millennials or younger (52%) and those under 35 (54%) experiencing burnout more acutely. To cope with this feeling, 39% of Americans are spending less and budgeting more, followed closely by 25% of those who spend more frequently on everyday items.
Compared to last year, a good night's sleep is no longer sufficient when it comes to feeling financially resilient. The top three things that will make consumers feel more financially resilient in 2023 are financial information (55%, up from 48%), digital banking tools (47%, up from 39%), and advice from a financial advisor (36%, up from 29%)—edging out a good night's sleep (30%, down from 43%).
One in three (33%) consumers are protecting themselves from making financial faux pas by better identifying and prioritizing needs versus wants, but with plans to spend more money on experiences or events, what constitutes a must-have versus a nice-to-have may be changing.
"The last several years have taken a toll on individuals, impacting their financial and mental well-being," said Jamie Warder, Head of Digital Banking at KeyBank. "With the uptick in income decline and consistency of financial faux pas has made many consumers feel less savvy about their finances this year compared to last. Yet, despite all this, Americans find themselves much more mindful about money going into 2023."