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.
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