As our lifestyles and routines changed during the COVID-19 pandemic, so did our approach to money. Travis Credit Union surveyed 2,000 American consumers to learn more about their approach to money — how they approached spending and savings during the pandemic, and how they plan to use it in the future. 50% of respondents said they spent less money during the pandemic than did they previously. Top reasons for spending less: 1. Financial uncertainty due to COVID-19 2. Fewer opportunities to spend money 3. Job loss caused them to re-evaluate their spending. 33% of respondents reported spending more during the pandemic than they had originally budgeted for. Top reasons for spending more money: 1. Stress or anxiety 2. Doing it unconsciously 3. Boredom.
One area that Americans cut back on during the COVID-19 pandemic was big purchase items. Many people cut back on spending money on travel, buying a car or home, home improvements among other areas. Despite this, many American’s are optimistic about the future. 81% believe their financial situation will improve over time with many planning on cutting back on their spending and increasing their savings.