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.