The term “financial freedom” is thrown around everywhere, in influencer captions, finance podcasts, and, if your algorithm is like mine, on your Explore page (or FYP). But, ok, what does it actually mean and look like now in 2025? Are we talking passive income and yacht parties (lol) or just not panicking every time rent is due?
Bankrate asked over 2,300 U.S. adults to define what financial freedom means for them, and the answers give a much more realistic picture of what people want, particularly younger generations. Here’s what stood out from the survey and what it means if you’re a Millennial or Gen Z figuring out your financial game plan.
1. Financial Freedom is Not About Being Rich
Turns out, most people aren’t dreaming about becoming millionaires; they just want enough to live comfortably without stress. According to the survey, the most common definition of financial freedom was being able to afford life’s necessities and some extras comfortably.
Meaning:
- Having housing, food, healthcare, and bills covered
- Being able to treat yourself without guilt (like the occasional $8 matcha latte or a weekend trip)
- Not living paycheck to paycheck
- Not being trapped in a job you hate just for the income
Basically, peace of mind is more important than a luxury lifestyle. This is a major mindset shift from the old-school “make 6-figures or you’re failing” mentality since financial freedom now looks more like just being stable with some breathing room.
2. Gen Z & Millennials want Balance, Not Just a Big Paycheck
Older generations primarily defined success as climbing that corporate ladder and buying property, but for younger adults, that vibe has changed.
More and more Millennials and Gen Zers are saying:
- “I’d rather make less if I can work remotely or have flexibility.”
- “A fat paycheck is worth burnout.”
- “I want to build a life I don’t need a vacay from.”
People are prioritizing:
- Time freedom: having the ability to travel, rest, and take care of mental health without financial panic
- Job flexibility: the choice of side hustles, freelance life, or remote work over a rigid 9-5
- Values-based spending: choosing where to spend based on ethics, impact, or joy
All of this to say, it doesn’t mean that money doesn’t matter, but the definition of “success” is more general. Freedom means living on your own terms, not someone else’s expectations.
3. We’re Still Anxious About Money
Even with all the mindset growth, the financial anxiety is real, especially for younger adults.
The survey showed:
- 77% of U.S. adults don’t feel financially secure (32% of this group feel they never will be)
- Many don’t think they’ll reach it until their 60s or later
- Gen Z and Millennials report being the most stressed about money
One of the biggest reasons for all this anxiety is that there’s a major gap between what people earn and what they feel they need to feel secure.
More than 1 in 4 Americans say they’d need to earn at least $150,00/year to feel financially comfortable. But compare it to the actual average U.S. salary, which is $81,515 in 2023, and that’s almost half of what many people think they need to breathe.
That disconnect is driving major money anxiety:
- Wages haven’t kept up with the increasing cost of living
- Milestones like homeownership feel out of reach for many
- Groceries, gas, student loans, and health insurance have all gone up
Basically, people want balance and peace, but the economy is demanding that we grind harder just to break even, which burns people out.
4. People Define Financial Freedom Differently
Personal finance is…personal, and it can be different for everyone. The same can be said for financial freedom, too, as there’s no one-size-fits-all definition.
Ways that people define it:
- Being debt-free
- Saving for the future and having a fat emergency fund
- Not needing to work unless you want to
- Retiring early or taking mini-retirements in your 30s/40s
- Not stressing about unexpected expenses like car repairs, pet surgery, etc.
Everyone’s version of “financial freedom” looks different, and that’s totally cool. What matters is understanding what YOUR version looks like, then building towards it, one step at a time.
5. What It Takes to Get There
So, how to actually achieve financial freedom?
Top answers:
- Pay off debt: The less you owe, the more freedom you gain! Both emotionally and financially.
- Saving and investing: Even small amounts will add up over time due to the magic of compound interest
- Earning more: Through raises (have to ask for it!), side hustles, freelancing, or career shifts
- Being financially knowledgeable: Understanding how credit, taxes, investing, and budgeting actually work (lots of free material here at The Money Move and online in general)
The key takeaway? It doesn’t need to happen all at once, like you don’t need to be debt-free, maxing out a Roth IRA, and jumping down your boss’s throat about a raise by next week.
Just making one intentional move a month can help you build momentum toward your version of freedom.
The Money Move
The final take is that financial freedom is personal, so don’t feel pressured to hit someone else’s money milestones. Financial freedom in 2025 is about autonomy, flexibility, and emotional well-being, not status.
It’s being able to make life choices without constantly checking your bank app or counting down to payday to afford something. It’s buying groceries without anxiety. It’s taking a random Wednesday and not worrying about falling behind.
So if your version of financial freedom is living debt-free with a flexible schedule and enough money saved to breathe, that’s valid. If it’s something else entirely? That’s absolutely valid too. The point is, you get to define what it looks like, so start making your moves!