The COVID-19 pandemic has caused one of the largest economic downturns since the Great Depression, resulting in financial uncertainty for many Americans. Highland recently surveyed 2,000 Americans to get a better understanding of their spending habits and personal finances during the COVID-19 pandemic.
They found that 63% of Americans have cut back on consumer spending during the pandemic. Surprisingly enough, 21% of consumers actually reported spending more during the pandemic. Top reasons for cutting back: 1. Being more cautious 2. Reduced income/salary 3. Staying home more often 4. Lost job 5. Spouse/partner lost job. Where Americans have cut back: 1. Dining out/takeout 2. Entertainment 3. Apparel 4. Travel 5. Transportation. Top reasons for spending more 1. Buying more food or groceries 2. Buying more household supplies 3. Started new hobby 4. Home improvement/renovations 5. Retail therapy. 63% have been living paycheck to paycheck, which is up 10% prior to the start of the pandemic. 27% of Americans say they’ve accumulated $10,000 or more in debt during the pandemic. 26% also reported saying that they felt that they do not currently have a stable income. On a positive note, 79% of Americans said that the pandemic has made them think differently about spending and saving in the future.