CLEVELAND — A substantial number of Americans “are in a difficult financial position,” with 55% facing financial challenges during 2022, a substantial increase from the previous year, a major new consumer survey has found.
According to the KeyBank 2023 Financial Mobility Survey, one in three (33%) surveyed consumers are “protecting themselves from making financial mistakes 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 survey, which polled 1,000+ Americans on their financial and life-related priorities after a year of market volatility and uncertainty, contains major implications for the residential remodeling, homebuying and kitchen/bath markets, which rely heavily on robust consumer confidence and a willingness to make significant discretionary purchases on their homes.
However, the last several years “have taken a toll on individuals, impacting their financial and mental wellbeing,” said Jamie Warder, head of digital banking at the Cleveland-based KeyBank. “The uptick in income decline and the consistency of financial faux pas has made many consumers feel less savvy about their finances this year compared to last.”
According to the survey’s findings, 42% of those surveyed reported “feeling overwhelmed or burned out regularly,” with Millennials-or-younger people (52%) and those under the age of 35 (54%) experiencing burnout more acutely. To cope with this feeling, 39% of Americans say they are spending less and budgeting more.
“After the roller coaster 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 v.p./of consumer client growth at KeyBank. “More people have experienced a loss of income and fewer feel financially savvy.”