Six in 10 Americans Agreed They’re More Financially Confident Than They Were Before the Pandemic

Gen Z and American millennials are “capitalizing on” time lost due to the pandemic and applying new financial lessons from these life-changing years, according to a new survey.

The new survey asked 2,000 Gen Z and millennial Americans (born 1981-2003) and asked them about their new spending and saving habits during the ongoing impact of the pandemic.

The results found that nearly seven in 10 (69%) are re-spending money on things that were lost due to COVID-19. And 75% are focusing their spending on activities that allow them to catch up with friends and family.

When restrictions were lifted and reopens began in early summer, Gen Z and millennials took advantage, with 51% of respondents splurging on a trip, while 49% have been spending money on drinks and bar dinners. and restaurants.

Carried out by OnePoll on behalf of Laurel Road, a KeyBank digital banking platform, the survey also found that 58% created new savings goals because their spending habits have changed.

Six out of 10 respondents agreed that they are more financially confident than before the pandemic and attribute their need to be more financially responsible to COVID-19.

It translates into a shift in the way Gen Z and millennial Americans manage their personal finances, with just over 30% admitting they are budgeting for the first time, while an additional 39% are using new methods such as apps. or dedicated spreadsheets to keep track of. of your budget.

Saving more

The survey found that 61% of those surveyed managed to save at least $ 1,000 from the onset of the pandemic through the beginning of the summer of 2021 and one in 10 saved more than $ 5,000.

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With those new savings, Gen Z and millennials say they will use it to pay off their student loans (38%), spend them on vacations (37%), pay rent (32%) and make payments on their credit. cards (29%).

“It is encouraging to see that young Americans feel more financially secure through what remains a very difficult and challenging time, and that many are focused on maintaining their hard-earned savings,” said Alyssa Schaefer, Director of Experience on Laurel Road. .

The survey found that 77% of those who have private loans now feel ready to start paying again, compared to 62% who have federal student loans.

Respondents’ confidence in their ability to save remains high, with two-thirds (66%) indicating that they believe they can achieve their savings goals in the future.

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In fact, this is the most important thing to many, as more than one in five (22%) of those surveyed noted that if they had an extra $ 1,000 to spend for the remainder of 2021, they would put it in their savings account.

MAIN CHANGES IN PERSONAL FINANCE

1. Started using a new budgeting method (apps, spreadsheets, etc.): 40%
2. Created new savings goals: 31%
3. Now budgeting for the first time: 30%
4. Spoke to a financial advisor – 24%
5. Planning to pay off more of my student loans: 20%

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