How Consumers Are Spending and Saving Their Money Due to COVID-19
As America experiences its highest jobless rate since the Great Depression, consumers are making changes in how they manage their finances. ENGINE took a closer look at how consumers are spending and saving their money in the light of the recent pandemic. The study revealed that 43% of consumers have experienced a decline in their household income since the outbreak began, leading many to actively cut expenses.
Consumers do differ in how they are responding financially, tending to fall within 4 different financial personas ranging from “All Hands on Deck” to those who might be “Frozen in Action”, and anything in between. The personas are based on how consumers have changed their habits, their current and past financial situation, and their household dynamic. Each group is likely to emerge from the pandemic with very different financial needs.
As a bright spot, there is an expectation among consumers that their finances and the world will return to some sense of normalcy soon. For those whose household income has been negatively impacted, three-quarters expect their income to return to pre-outbreak levels. Even more optimistic are the consumers who have had to postpone a vacation or trip, six-in-ten expect to go on this vacation in the next 6-9 months.
Check out ENGINE’s new infographic to learn more on the changing dynamic of consumer finances and the financial personas.