The Travis Credit Union Blog shared that there’s no denying it: 2020 was a rollercoaster of a year. As our lifestyles and routines changed during 2020, so, too, did our approach to money—how we spent and saved it, as well as how we plan to use it in 2021.
At Travis Credit Union, they strive to be there for our members every step along their path to financial wellness. Part of doing so is understanding where their members are and how they’re feeling when it comes to their personal finances. Travis surveyed 2,000 Americans to learn how their spending and savings habits changed this year, plus their outlook on the economy and their own financial futures.
Of those they surveyed, half said they’ve reined in their spending in 2020. Three in five made it a conscious choice: 52% cited financial uncertainty due to COVID-19, 28% said they simply had fewer opportunities to spend it, and 15% said job loss caused them to re-evaluate their spending.
Not everyone is being more careful with his money, however: one in three said they’ve actually been spending more this year, and 61% of those said they’re doing it deliberately. Why? Most often, out of stress, anxiety, or boredom.
One area where most Americans are pulling back: big purchases. More than 2 in 3 respondents said they felt the need to delay a large purchase this year due to COVID-19. Most often, these purchases involved travel (51%), a new car (39%) or home (34%), home improvement (33%), and healthcare (23%).
2020 has been a stressful year, and many are looking for ways to cope. One coping mechanism—spending more money due to stress or anxiety—has picked up a new nickname in the pandemic era: “doom spending.” Half of the respondents admit to that behavior this year.