Clients and the broader set of retail investors are to be forgiven if they feel as though the current state of the U.S. economy is, well, “weird.”
Inflation remains stubbornly high, jeopardizing the Federal Reserve’s ability to lower interest rates this year. Job growth is slack and oh yeah, there’s war in Iran. Put it all together and clients are right to be somewhat pensive. On the other hand, stocks, which are forward-looking indicators, are at all-time highs, potentially implying the economy could turn for the better later this year.
Of course, that’s referencing the economy in broad terms. Many clients and millions of ordinary Americans are more focused on their personal economies. Stocks can go up and the Fed can or won’t cut interest rates, but data indicate Americans – rightfully so – are concerned about their everyday economies and they’re taking steps to improve their personal situations.
Economic Trade-Offs Abound
KeyBank's 2026 Financial Mobility Survey Pulse Poll, a follow-up to KeyBank's Financial Mobility Survey, indicates 28% of Americans are concerned about the economy, a slight uptick from the 26% that said the same in the July 2025 edition of the poll.
Of note to advisors is the fact respondents to poll aren’t taking economic stress lying down. Presumably, that sentiment carries over to existing clients and prospects. Rather, folks are taking action and that includes people in higher income brackets.
“One in three Americans (33%) are making financial trade-offs every single day, and another 31% are doing so weekly,” according to Key Bank. “That means nearly two-thirds of Americans are actively managing their spending and savings on at least a weekly basis – a sign of financial engagement. Higher earners are not exempt, with a quarter (26%) of those with at least $100,000 in income making daily financial compromises.”
It’s also worth noting that these trade-offs, some of which are prosaic, are viewed as significant by those making those moves and at the end of day, clients are finding ways to stretch their dollars further.
“88% of Americans have made at least one meaningful adjustment to their financial behavior, a figure that spans income levels and generations,” according to the poll. “The most common strategies include switching to less expensive brands or services (59%, up from 49% in 2025), cutting subscriptions or memberships (51%, up from 41%), and reducing discretionary spending (11%, up from 8% in 2025). Side hustles are also rising. More than one in three Americans (35%) has taken on additional work to generate supplemental income, with Gen Z leading the charge at 49%.”
Good News for Advisors
On the surface, the concept of economic trade-offs is negative. In a perfect economy, side hustles would be optional, not necessity, and trading down to cheaper brands wouldn’t be necessary. That’s not the world we’re living in today.
However, there’s a silver lining. First, there’s no evidence, at least not in the Key Bank survey, that the folks engaging in economic trade-offs are jeopardizing retirement planning and savings to boost near-term cash flow. Nor is there anything to suggest that they’re squandering the savings realized by dialing back on subscriptions or dinners out. If anything, folks in the economic trade-off crowd are being pragmatic and that could lead some of them to advisors’ doorsteps.
As Key notes, those making economic trade-offs want to direct their savings to “emergency savings, debt reduction, or retirement contributions can compound its impact over time” and they want more help managing their money, including working with a “trusted financial partner to build a tailored plan can help Americans navigate uncertainty with greater confidence.”
Related: The Female Investor Advantage: Why Women Win—and What Advisors Must Do Differently