WASHINGTON–Nearly half of all American adults say they cannot afford another year like 2020.
According to a new Coronavirus Money Survey from WalletHub, many people are feeling financial stress and have altered their spending habits.
Key findings in the survey include:
· Money problems are a huge source of stress and have now surpassed COVID-19 as the top stressor in America, a 15% change since last year.
· The pandemic has led to a greater need for credit cards. Twenty-nine million more Americans say they will apply for a new credit card this year due to coronavirus, compared to last year.
· Women’s spending has increased more. Women are 16% more likely than men to say they spend more money due to coronavirus.
· Many Americans have decided to start saving. 61% of Americans are saving more money during the coronavirus pandemic, rather than spending.
Effect Upon Finances
“Financially, 2020 was such a difficult year that roughly 145 million Americans cannot afford another year like it,” said Jill Gonzalez, WalletHub analyst. “Luckily, the U.S. is rolling out the COVID-19 vaccine, which will help conditions in the country approach normalcy more and more over the coming months. The American Rescue Plan, which comes with $1,400 direct payments, should also help ease the burden on people’s finances this year.”
The Response
How have consumers responded during the pandemic?
“One of the biggest ways that consumers have reacted to the COVID-19 pandemic is by opening more credit card accounts, as 29 million more Americans say they will apply for a card this year than last year,” said Gonzalez. “One positive way that consumers have reacted to the pandemic is by increasing the amount of money they save. Roughly 61% of adults say they are saving more, as opposed to buying more, due to COVID-19.”
The complete survey results can be found here.