62% of Americans Say the Current Crisis Has Hurt Their Finances

Home » Money Management » Personal Finance » 62% of Americans Say the Current Crisis Has Hurt Their Finances

62% of Americans Say the Current Crisis Has Hurt Their Finances

It’s no secret that the COVID-19 pandemic is taking a toll on the financial security of many Americans. Now a new survey by Quicken shows just how far-reaching and diverse those impacts have been. First, 62% of people have seen the current crisis either “severely” or “somewhat” negatively affected their personal finances — with 21% saying the impacts were severe. Moreover 40% of respondents expected the effects to end up being as large as the 2008 recession if not larger. In terms of specific ramifications, one-third of those surveyed said that they’ve recently lost their jobs or at least had their hours cut. Additionally, among that group, 59% said someone else in their household was in a similar situation.

As we saw with another survey looking at small businesses, it also seems as though a few of the financial implications of this crisis will continue to linger. For example Quicken found that many Millennials were delaying some life and money milestones as a result of the outbreak. Nearly one-quarter (23%) of Millennials surveyed reported that they would be putting off buying a home for the foreseeable future as a result of this pandemic. Meanwhile 8% noted that they’ve been forced to postpone their weddings and 13% are now planning not to have children until later.

In a bright spot among the report, 86% of respondents rated their financial preparedness before the crisis as “okay” (37%), “good” (37%), or “excellent” (12%). However 11% said their level of preparation was “not good” with another 2% saying it was “terrible.” What’s more, of those who said they were terribly prepared, 53% have recently seen their hours cut or jobs lost.

Summing up the report’s findings, Quicken CEO Eric Dunn said, “The financial repercussions of the coronavirus crisis can’t be overstated. Just 4% of survey respondents said there would be no impact for them, highlighting the widespread financial challenges facing Americans today.” Dunn went on to point out one potential silver lining, stating, “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.”

At this point, it’s safe to say that the COVID-19 pandemic will be remembered as one of the most financially trying times that many Americans see in their lifetimes. Yet, for better or worse, we don’t quite yet know how long the suffering will continue, with some holding out hope for a quick bounce back and recovery. While it’s far too early to speculate about whether or not that will be the case, one thing that does seem all but certain is that this crisis will change the way many people manage their money from now on.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

What is a 401(k) Loan and is it a Good Idea?

For many employees, their 401(k) plan is their main means of saving for retirement and it may also represent the bulk of their net worth. Given this reality, it's no wonder that some individuals might look at their retirement savings and wish that they could utilize some of those funds...

Sales of Existing Homes Fall to Near 10-Year Low

During these interesting times, are you in the market for a house? If not, you certainly aren't alone. As CNN Business reports (and according to data from the National Association of Realtors), sales of existing homes dropped by 17.8% in April compared to the previous month. Similarly sales were down...

FinTech Numerated Announces Automated PPP Loan Forgiveness

Among the many ways that the coronavirus pandemic has changed life in America and around the world is that it's made FinTech more relevant than ever before. From contactless payments becoming a growing preference to digital banking proving essential, these innovations have been thrust into the spotlight. Similarly, while select...