Despite the circumstances of the global pandemic, millennials and Gen Z were more financially confident than they were before 2020. According to a survey conducted by OnePoll on behalf of Laurel Road, a digital banking platform of KeyBank, 6 in 10 (60%) within said age group are now more financially confident than they were before the onset of the pandemic.
The poll asked 2,000 millennial and Gen Z Americans born between 1981 and 2003 about their new spending and saving habits. Respondents said they felt more financial confidence because of COVID-19.
The survey also found that these generations are changing how they manage their personal finances, Good News Network noted . About 58% of respondents created new savings goals because of changes in their spending habits. Additionally, over 30% confessed that they’re budgeting for the first time, while 39% are using new methods such as apps or spreadsheets to keep better track of their budgeting habits.
Millennials and Gen Z were also able to save more during the pandemic. The survey found that 61% were able to save at least $1,000 from the start of 2020 through the beginning of summer 2021, and one in ten saved over $5,000.
Savings surged during the pandemic as Americans cut back on spending and stimulus checks and unemployment benefits helped to boost income. The U.S. personal saving rate jumped to a record 32.2% in April, up from 12.7% in March, according to the U.S. Bureau of Economic Analysis. At the same time, consumer spending fell 12.6%.
With these savings, Gen Z and millennials said that they’ll put more money toward paying off their student loans (38%), spend it on a vacation (37%), pay their rent (32%) and make payments on credit card debt (29%). Over 1 in 5 respondents also said that if they had an extra $1,000 for the rest of 2021, they would put it into their savings account.
“It’s encouraging to see that young Americans are feeling more financially confident throughout what continues to be a very difficult and challenging time, and that so many are focused on maintaining their hard-earned savings,” said Alyssa Schaefer, Chief Experience Officer at Laurel Road, as reported by Good News Network.
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Last updated: September 22, 2021