How American Spending Habits Have Changed Drastically During the Pandemic
The coronavirus pandemic has beaten us – it cut off our physical connection to the rest of the population, closed down businesses, halted travels, and even cost some of us our jobs, all of these contributed to a significant drop in consumer spending. However, for the lucky ones who still get a paycheck, this situation became a huge help in reimagining their financial routines.
Let’s face it; the outbreak has affected us in all aspects thinkable. However, can it be a blessing in disguise?
Ponder on this: a TD Ameritrade survey found that two-thirds of the 1,000 Americans surveyed believe this situation has helped cut back expenses. While many people spent ridiculous amounts of money stockpiling groceries, respondents observed a gap that was supposed to be for out-of-town/country vacations, buying clothes, and eating out.
On the other hand, it was also observed that balances of savings accounts have increased, and many Americans believe this wise spending habit will last. In the survey, 64 percent are confident this routine will stay for good after the pandemic.
They also imagine themselves tracking their expenses, having an emergency fund, and cooking food more at their abodes post-outbreak. Many of the respondents also said they would be patronizing more American-made products to help small businesses thrive.
These are all empty words if people will go back to their usual unhealthy money routine. If this is true, then they will prove the adage ‘old habits die hard.’ Especially now that states have been relaxing protocols. As small businesses begin to open, it’s time to see if Americans will put their newfound spending techniques to use.
Lending Tree‘s chief credit analyst, Matt Schulz, remains skeptical if this mindset lasts until the outbreak becomes a part of history books. He believes that people will go back to their usual financial habits when restrictions are abolished – for instance, many will rush to their favorite fast-food chain when they can instead of opting for a home-cooked meal.
Bill Van Sant of wealth management firm Girard also explains that as summer comes in, many people would go back to their old routine. He predicts there will be an upswing in purchases of big-ticket products like pools and RVs.
It is worth noting that the coronavirus pandemic didn’t put an end to our spending; instead, it just temporarily took hold of our purchasing powers. As such, when things get laxer, there’s a high chance that people will likely go back to buying things carelessly. Still, with the new habits discovered during the outbreak, they can also become mindful of letting go of their hard-earned cash, which will be diverted to their savings for future emergencies.
More in Smart Life
Daniel Radcliffe’s Epic Response After Harry Potter Costar Rupert Grint Became First-time Dad
The ‘Harry Potter’ saga has long been over, but the friendships formed between the stars who practically grew up together on...May 20, 2021
Selena Gomez’s Quarantine Routine Focuses on Mental Health More Than Anything Else
Not one to shy away from her experiences, Selena Gomez recently told her fans that it is crucial to have discussions...May 5, 2021
Lisa Kudrow Says She Felt Like a Monster for Enforcing This STRICT Rule at Her Mother’s Funeral
There’s nothing wrong with being a little cautious, especially now that a highly contagious virus is wreaking havoc across the world....April 28, 2021
Joe Rogan Signs UNBELIEVABLY Lucrative Deal with Spotify for Exclusive Rights to His Podcast
Joe Rogan, the former ‘Fear Factor’ host and commentator, is the man of the hour or perhaps the year after...April 5, 2021
Oprah Winfrey and Lady Gaga Love Transcendental Meditation – But What Exactly Is It?
Keeping a clear headspace these days has become a difficult task – but let us remind you that it is not...March 22, 2021
Kristen Bell Has Found the Perfect Way to Make Husband Dax Shepard Do Housework
Most parents have found themselves taking the role of teachers during the quarantine to prevent any gaps in their children’s education. Much to their surprise, teaching isn’t...March 15, 2021
How Lana Del Rey Showed up at the Grammys in a $600 Dress from the Mall
Lana Del Rey stole the scene as she walked the red carpet of Grammys because of her dress that sparkled under the camera...March 5, 2021
Dakota Johnson’s Fans Divided over Her Controversial Statement About Shia LaBeouf
Actress Dakota Johnson had the chance to work with Shia LaBeouf in an indie film, ‘The Peanut Butter Falcon,’ and she has nothing...February 14, 2021
J.K. Simmons’ Audition for Spider-Man Didn’t Go As Planned, But Here’s How He Snagged the Role
Most, if not all, of us, found the Daily Bugle editor J. Jonah Jameson, Peter Parker’s boss in the original film’...January 27, 2021