Battling Burnout and Rebuilding Financial Confidence in 2023

January 2023

<p>Battling Burnout and Rebuilding Financial Confidence in 2023</p>

Looking back on the highs and lows of the past several years, there is no doubt that concerns surrounding public health and economic conditions have presented unique difficulties for many Americans. According to The KeyBank 2023 Financial Mobility Survey, the share of Americans facing financial challenges grew to 55% over the past year, a nearly 20-point increase from the year prior. In addition, fewer Americans are feeling savvy about their finances this year compared to last (33% vs. 43%). But despite—or perhaps in spite of—ongoing economic turbulence and financial stress, Americans are entering 2023 with an appetite for knowledge and a determination to bolster financial resilience, leveraging digital banking tools, financial information and support from financial advisors to chart a path forward.

As we begin the new year, many may find themselves ready to hit reset and start rethinking their goals. Read on for more insights into Americans’ top financial challenges, priorities and strategies from the past year, as well as tips for making the most of your financial endeavors this year while also recognizing and overcoming financial burnout.

Top Changes in Personal and Financial Priorities

With the past 3 years taking a toll on wallets and minds, Americans have their eyes set on the year ahead. While personal and financial concerns and strategies have shifted, financial mobility—or the ability for one to move up the wealth spectrum—continues to be a priority for Americans as they reassess their situations and recalibrate their plans.

2022 can be considered a year of learning for consumers, which may help boost confidence and financial mobility in the future. We’ve learned that Americans are feeling the pressure but maintain their resolve, as highlighted in The KeyBank 2023 Financial Mobility Survey:

  • Burnout Spares No One: While it may not be a medical diagnosis, Americans of all ages are burned out: two in five people (42%) report feeling overwhelmed or burned out regularly, with Millennials and those under 35 experiencing burnout more acutely (52%, 54% respectively).

  • Finding Ways to Cope: Of those feeling overwhelmed or experiencing burnout, 39% are coping by spending less and budgeting more, while 25% are spending more frequently on everyday items.

  • Shifting Definitions of Wants vs. Needs: Nearly 4 in 5 people (77%) have made a change to their spending habits, with one-third of Americans reevaluating their “must haves” and “nice to haves” in an effort to curb financial faux pas.

  • Knowledge at Your Fingertips: Over the past year, there was a 25% increase in consumers who use digital banking, underscored by the large share of consumers who feel comfortable with online banking (72%) and mobile banking apps (65%).

  • Facing the Challenge Head On: For 89% of respondents, budgeting was the biggest financial faux pas of the past year. The need to tackle faux pas head on is an emerging priority, either by talking with someone they trust (50%) or doing research online (49%).

Learn more about the findings from The KeyBank 2023 Financial Mobility Survey here.

Four Tips for Financial Mobility

Does any of the above sound familiar? If so, here are some ways for you to take charge in 2023, while keeping both your financial goals and personal wellness in mind. 

  1. Start where you are and set a path toward your destination. Whether your vision for 2023 includes leaning into career growth opportunities, planning for life milestones like buying a home or starting a family, or simply gaining a better understanding of your finances, resources from Key’s Financial Wellness Center can help you determine where you currently stand and what steps you can take to get where you are going next.
  2. Speak with a trusted advisor who can help you assess your financial situation and identify any potential financial faux pas. Those who know you well—such as a spouse, significant other, family member, or friend—might be able to share personal insights you had not previously considered. On the other hand, a financial professional can share an objective point of view on your overall financial picture and help you create a plan to reach your goals. Set up a Financial Wellness Review at your local KeyBank branch to help get you started.
  3. Build financial confidence and security by using the right tools. The uncertainty of the past few years highlighted the importance of backup plans and emergency savings. Online and automated features can ease the stress of managing your finances today and offer peace of mind for tomorrow. For example, our EasyUp tool automatically transfers $1 from your checking and into your savings account with each purchase that you make, while our Savings Calculator shows how small additions to your savings can make a big difference over the years.
  4. Balance your budget—and your activities. Burnout can take a toll on everything from your job performance and financial wellness to physical and mental health. Remember to check in with yourself regularly to best manage your workload, financial priorities and personal time.

This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice.

By selecting any external link on key.com, you will leave the KeyBank website and jump to an unaffiliated third-party website that may offer a different privacy policy and level of security. The third party is responsible for website content and system availability. KeyBank does not offer, endorse, recommend or guarantee any product or service available on that entity's website.

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1-800-KEY2YOU® (539-2968)

Clients using a TDD/TTY device:
1-800-539-8336

Clients using a relay service:
1-866-821-9126

Schedule and Appointment

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Talk to a Branch Manager in your neighborhood.

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