Burnout hitting consumer confidence, KeyBank survey finds

The KeyBank 2023 Financial Mobility Survey, released Jan. 9, finds Americans are in a “difficult” financial position as 55 percent faced financial challenges over the past year. The finding represents a “substantial” increase from the year prior (37 percent), with more than double the number of respondents saying their biggest financial faux pas involved budgeting issues […]

Already an Subcriber? Log in

Get Instant Access to This Article

Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.

The KeyBank 2023 Financial Mobility Survey, released Jan. 9, finds Americans are in a “difficult” financial position as 55 percent faced financial challenges over the past year.

The finding represents a “substantial” increase from the year prior (37 percent), with more than double the number of respondents saying their biggest financial faux pas involved budgeting issues (89 percent vs. 35 percent, respectively). 

Yet, even as Americans face these challenges, the majority (85 percent) 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,” Mitch Kime, executive VP of consumer client growth at KeyBank, said. “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. 

Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial-services companies, with assets of about $190 billion. Its roots trace back nearly 200 years to Albany. KeyBank has a network of about 1,000 branches and 1,300 ATMs in 15 states. It is ranked No. 2 in deposit market share in the 16-county Central New York region.

Findings breakdown

The report found two in five people (42 percent) reported feeling overwhelmed or burned out regularly, with Millennials or younger (53 percent) “experiencing burnout more acutely.” To cope with this feeling, 39 percent of Americans are spending less and budgeting more, followed closely by 25 percent 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 percent, up from 48 percent); digital banking tools (47 percent, up from 39 percent); and advice from a financial advisor (36 percent, up from 29 percent) — edging out a good night’s sleep (30 percent, down from 43 percent).

One in three (33 percent) 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,” KeyBank said. 

“The last several years have taken a toll on individuals, impacting their financial and mental well-being,” Jamie Warder, head of digital banking at KeyBank, said. “Yet, despite all this, Americans find themselves much more mindful about money going into 2023.”

Methodology

Schmidt Market Research conducted the online survey. A total of 1,018 Americans — ages 18-70 with sole or shared responsibility for household financial decisions, who own a checking or savings account — completed the survey between Sept. 8 and Sept. 16, 2022. 

The survey asked respondents about their financial attitudes, understanding, awareness, and actions over the prior year.  

Eric Reinhardt: