Are You One of Those Saving

By on September 1, 2020
Saving

With the COVID-19 outbreak leaving some Americans to rethink their financial plans for retirement and the financial future of their children, the Invest in You Survey explored how Americans are tightening their belts to account for current economic conditions. The survey found that many are seeing the costs of essential items going up, amounting to increased monthly spending, though most are skewing towards a philosophy of saving.

An online poll was conducted on August 13 – 20, 2020 among a national sample of 5,401 adults. Respondents for this survey were selected from the more than 2 million people who take surveys on the SurveyMonkey platform each day.

Key findings from the Invest in You Survey include:

  • Americans are saving more and spending less compared to before the pandemic with 60% of respondents calling themselves “savers,” which was up from 54% in 2019.
  • 46% say they are “more of a saver now” compared to before the pandemic.
  • Nearly half (49%) of respondents say their monthly spending has decreased over the course of the last year. Among that group, more than half (53%) say they are spending less because they are worried about the current economic situation. Another 26% are spending less because they say their monthly income has decreased.
  • 14% of Americans say they have wiped out their emergency savings since the onset of the pandemic. 11% have borrowed money to cover emergency expenses.
  • More than a quarter (26%) of 25-34-year-olds say they have wiped out emergency savings.
  • 16% of Black and 20% of Hispanic Americans say they have wiped out emergency savings, versus 13% of White Americans.
    Less than 10% of respondents say they have taken extreme measures like borrowing or taking early withdrawals from retirement accounts and asking for mortgage or rent relief.
  • The majority of respondents 53% living with children under 18 say they have no savings account. Neither do they have a 529, IRA, or cash set up for their kids.
    32% say they have regular savings accounts for their kids while 13% have a 529 college savings account.
  • 59% of Black and 60% of Hispanic parents say they have no savings accounts for their kids.
  • 19% of parents say they have an automatic savings feature set up for their kids’ accounts.

Why is this survey important?

These insights are critical for business leaders looking ahead to 2021. These insights are critical for business leaders looking ahead to 2021. In an economy that is dependant on the flow of money from consumers to businesses, saving disrupts that flow. Saving is an important tool to prepare for the individual’s future. However, with increased savings, there will be a drying up effect in the marketplace. With less revenue, companies will need to reduce staff and so the cycle continues.

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Are You One of Those Saving