Study Shows Covid Helped Americans With Their Spending Habits
The pandemic has forced a lot of Americans to adapt to new lifestyle changes and behaviors, especially when it comes to finances and money management. – Northwestern Mutual 2021 Planning & Progress Study.
The study we’ve cited was conducted in March by the Harris Poll and it included 2,320 subjects. A lot of interesting data was found in the study. Some of which we have listed down below:
32% of the subjects claimed they’re financial disciplined improved during the Covid-19 crisis.
95% of such subjects plan on maintaining these changes in the coming future.
17% of respondents stated they lacked a financial plan before the crisis but now they’ve made one.
83% of people have gone back and revised their plans according to the massive changes.
Approximately 45% of the people vowed to cut back on their living expenses, focusing on investing (33%), and reducing debt (34%).
29% also said they will pay more attention to their financial plans and revise them on a more frequent basis, and also utilize technology to help them manage their money (28%).
Unsurprisingly, not everything has been for the better as 45% of Americans feel the crisis put a critical dent in their expectations of achieving financial freedom. 18% felt their plans have been set back by at least 1-2 years, and a little over 3% claimed the pandemic pushed back their plans by more than 5 years.
The study shows Boomers got the better end of the stick, as Gen Z & Millennials feel the pandemic has been more brutal on their finances. 63% of Gen Z and 65% of millennial stated their plans for achieving financial freedom has been hindered by 1-2 years.
35% of the subjects revealed they had to delay a major life event (financial) because of the pandemic. 9% postponed their plans of buying a house, 5% even put off college, 17% delayed their large purchases, and 6% delaying purchasing a business.
Northwestern Mutual’s Chief Customer Officer, Christian Mitchell, said that it is likely that Americans are changing their financial choices and behaviors after the massive setback due to the Corona pandemic.
Read the latest news here.