60% of Millennials Reduced Their Spending as a Result of the COVID-19 Pandemic
Wednesday, June 17th, 2020
Sixty percent (60%) of millennials decreased their spending habits as a result of the coronavirus pandemic, according to a new survey from Clutch, a B2B ratings and reviews platform.
Only 5% of millennials spent more money in March and April.
The top four expenses for millennials during the coronavirus pandemic are:
Health and beauty (3%)
An article in Business Insider describes millennialsas "the generation paying for things that were previously seen as taboo by their parents," such as rentals, plastic surgery, and ridesharing. Their spending habits are also seen as a result of technological and economic advancements.
This generation has also experienced fallout from two recessions.
Millennials factored necessities into their budgets but found themselves cutting back on different luxuries and adjusted their plans accordingly.
Nearly Half of Millennials Cut Back on Travel
As travel regulations took effect, 40% of millennials stopped making vacation plans for 2020.
Twenty percent (20%) of millennials canceled scheduled trips, and only 15% continued making travel plans for the rest of the year.
Mason Miranda, a credit industry specialist at Credit Card Insider, and his wife found hiking and sightseeing to be perfect opportunities for adventure that fit within their budgets and within social distancing guidelines.
Small car trips might be the new normal for the travel industry as regulations continue to adapt.
Half of Millennials Still Ordered Takeout 1-2 Days a Week During the Pandemic
Although millennials spent less dining out at restaurants, 50% are still eating takeout and ordering delivery during the coronavirus pandemic.
"In March and April, I was cooking and eating from home a lot more than usual, but in May, I got tired of cooking and ate out a lot more," said Tess Robison, a content specialist at Money Done Right.
Only 28% of millennials did not use pickup and delivery options for their meals.
Those who continued ordering out had different reasons for their decisions.
Some felt that it was hard to recreate some of their favorite dishes.
Others ordered takeout to support their local businesses, like Michael James Nuells, who was furloughed by Disney at the start of the pandemic: "I've been making an effort to eat out more and order takeout to support my local economy," he said.
The U.S. has begun efforts to reopen the country, but Americans should consider what changes they'll continue to create smarter spending habits that will last a lifetime.
Read the full report here: www.clutch.co/accounting/resources/millennial-spending-habits-covid-19.
For questions about the survey, reach out to Kristen Herhold at firstname.lastname@example.org