Financial Confidence Among Millennials and Gen Z Rose to 60% During COVID-19

A smiling young female barista stands at the counter in her coffee shop and looks down as she counts paper bills that she has just pulled from her tips jar.
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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.

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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.

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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.

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“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


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