FOSTER CITY, Calif.,
Nov. 17, 2020 /PRNewswire/
-- There are many accounts of millennials moving back home
with their parents, losing their jobs or being laid off. After
inheriting a tough job market from the Great Recession, how has
this age group been affected by the COVID-19 pandemic? The personal
finance site, MyBankTracker.com, surveyed 1,001 Americans ages
25-34 to take a deeper look at how this generation has been
impacted by the coronavirus.
Highlights
- Nearly 30% of respondents say they suffered a career
setback
- About 29% were forced to make a financial move like using
emergency funds, moving home or changing living arrangements,
borrowing money or a relief loan and/or tapping into retirement
funds (28.8%)
- More than 58% report they spent less due to the crisis, whether
out of necessity or because there are fewer opportunities to spend
money (58.2%)
- Close to 44% were able to increase their savings (43.8%)
The pandemic adds to the financial challenges millennials face,
but the analysis shows many are becoming resilient and turning a
negative into a positive by reducing spending and building savings.
This could have contributed to the recession, but it may be the
smartest response for those facing economic hardship.
Four Out of Ten Millennials are Boosting Savings
- About 44% were able to save more during the pandemic (43.8%)
including:
-
- 27.1% who saved slightly more
- 16.7% who saved significantly more
- Men were more likely to boost savings
-
- 49.6% of male respondents report saving more
- 38.9% of female respondents say they saved more
- Overall 35.8% of respondents didn't change their savings
habits
Over 1/2 of Millennials Surveyed Reined in Spending By Choice
or Necessity
- More than half report they spent less than usual (58.2%)
-
- Nearly 30% spent slightly less than usual (29.9%)
- About 28% spent significantly less (28.3%)
- Just 27.1% say spending was unchanged and 14.7% report spending
slightly or significantly more
While the epic recession affects every age group, it may hit
millennials the hardest. They already hold a record amount of
student loan debt and just when their careers should be
gaining momentum, they've suffered a setback that may impact their
financial well-being and retirement outlook for decades.
Nearly Three Out of Ten Millennials Took Emergency Financial
Action
The survey shows millennials are finding ways to make
ends meet during the recession. A total of 28.8%* of respondents
report being forced to make at least one major financial move:
- 13.4% tapped their emergency fund
- 7.1% applied for financial hardship loan relief
- 6.3% moved in with family
- 5.2% found a cheaper place to live
- 5.0% took out a loan
- 4.1% took an early withdrawal from retirement funds
*These numbers total more than 28.8% because some millennials
say they had to take more than one action.
Nearly 1/3 of Millennials Suffered a Job Setback
The
weak job market impacted respondents in a variety of ways:
- Losing a job: 9.5%
- Didn't get a promotion or raise they were expecting before
COVID-19 hit: 8.4%
- Taking a pay cut: 8.0%
- Unable to find a job due to the pandemic: 4.1%
View the complete analysis: Millennials' Financial Habits
Improved Due to COVID-19 Pandemic
Methodology
The study was conducted through Google
Surveys on behalf of MyBankTracker from November 4-8, 2020 to October 2, 2020 with 1,001 respondents in
the United States ages 25-34 with
a standard deviation of +/- 7.4%.
The author of the study, Richard
Barrington, is available for comment. He can provide insight
into why millennials might be engaging in these patterns and what
it could mean for their financial future. Barrington is a personal
finance expert with more than 30+ years of experience in the
financial industry.
About MyBankTracker
MyBankTracker is owned and
operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing
performance marketplace technologies and services to the FinTech,
financial services and home services industries. QuinStreet is a
pioneer in delivering online marketplace solutions to match
searchers with brands in digital media. The company is committed to
providing consumers with the information and tools they need to
research, find and select the products and brands that meet their
needs. MyBankTracker is a member of QuinStreet's expert research
and publishing division.
MyBankTracker is an independent comparison website helping
consumers make smart banking and financial decisions. The mission
is to match consumers to their perfect bank by providing and
tracking in-depth information on more than 5,000 banks, credit
unions and financial products. Using a combination of technology
and money management expertise, MBT provides personal finance
comparison tools and educates consumers to optimize their
relationships with banks and lenders.
Twitter: @mybanktracker
Facebook: https://www.facebook.com/mybanktracker
Media contact
Amy
Eury
Public Relations Manager
412-532-9352
aeury@quinstreet.com
LinkedIn
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SOURCE MyBankTracker.com