Events and Market Volatility Related to COVID-19 Leads to Troubling Financial Impact for Majority of Respondents
Quicken Inc., maker of America’s best-selling personal finance software, shared results from a recent survey showing that the COVID-19 pandemic has already had a significant negative impact on Americans’ personal finances and highlights some of the financial challenges associated with the recent spike in unemployment. Survey data also points to many people pushing off major life milestones.
Sixty-two percent of survey respondents noted a negative impact on their finances (significantly or somewhat) by the events and market volatility related to COVID-19. Of those who said their finances were significantly impacted negatively, more than 80% had been confident about their financial preparedness prior to the pandemic, rating it as good, okay or excellent. Forty percent of respondents said the pandemic will be a “huge” (bigger than anything we’ve seen before) or a “big” (similar to the recession of 2008) financial event for them and their families.
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“The financial repercussions of the coronavirus crisis can’t be overstated,” said Eric Dunn, CEO of Quicken. “Just 4% of survey respondents said there would be no impact for them, highlighting the widespread financial challenges facing Americans today. We’re already seeing this impact causing changes in behavior, with half of respondents noting that they are making an effort to spend less and save more.”
One third (33%) reported losing their job/business or having their hours at work reduced due to COVID-19. Further, of those respondents who lost their job or business, nearly 60% also had another member of their household lose their job/business or have hours reduced.
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While the pandemic impacts people across all generations, millennials reported some of the deepest cuts to their finances and lifestyles. One fourth (25%) of millennial respondents said their finances had been significantly impacted negatively by events and market volatility related to COVID-19, which was higher than other generations. Millennials are also delaying major life milestones more than other generations because of COVID-19, including:
- 8% postponed their wedding
- 23% are putting off buying a house anytime soon
- 13% are putting off having a child
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