From my perspective, financial stability is when, if you lose a job in an economic downturn, you don't automatically lose your house. You have enough savings for 1-10 years (yes, that's a big range).

But yeah, it's a fair point. For some people, it's not living hand-to-mouth. For others, it's being able to have a mortgage rather than rent. [insert-my-definition]. For others, it's being able to live without working indefinitely. For others, it's being able to launch businesses from a personal bank account. I was vague.

In my area: The rent / mortgage eats the lion's share of your runway. If you're paying rent / mortgage, your savings don't go very far. If you've paid off your home, it's easy to stash enough away to live like a graduate student for a few years. If you own your home, you can also always scrunch together, and rent out a room.

The generational flip side is:

- Your kids inherit your house and your savings some day. That should be enough to cover much debt, or if you have many kids, at least down payments.

- Your kids can move in with you anytime, if they're laid off, launching a startup, going through a tough time, or just want to save some money. It's a safety net.