Americans are saving more and spending less, in response to COVID-19

Most people are making smart moves.

Americans are saving more and spending less, in response to COVID-19

Coronavirus is going to change the world in many ways. And one of the changes it has already ushered in is a shift in the way people handle their spending.

And while there's nothing good about the virus or its economic impact, the financial changes that Americans have made in response to it actually have been positive ones. In fact, the habits most people are adopting are worth keeping up even after the threat from the pandemic has passed.

Americans are making smarter choices

According to MX, some of the big changes Americans have made in response to COVID-19 include:

Saving more money: 34% of survey respondents indicate they've upped their savings rate because of the novel coronavirus. Reducing spending: During these turbulent times, 59% of Americans have cut their budgets so they aren't spending as much money as they did pre-pandemic. Re-evaluating their priorities: 48% of those surveyed indicate they are prioritizing living expenses, while 30% of respondents indicate their top priority is consumables, including food and drink.

Upping your savings rate, taking a close look at your spending, and making sure your money goes to the things most valuable to you can help see you through a coronavirus recession with your financial situation in tact. In fact, making these changes could help you become more financially stable even if you experience a job loss or cut to your hours, or if you're a retiree who lost some investment money when the stock market crashed.

Man typing on laptop while drinking a cup of coffee.

And if you put these good financial habits in place now and get used to practicing them, you can continue to save more and spend less once the pandemic ends. This should enable you to get on firmer financial footing and be prepared for whatever unexpected events life sends your way in the future.

It's not too late to change your habits

The good news is, if you aren't among the Americans taking these steps, you can choose to start them at any time. You just need to make a few simple changes. Depending on your current financial habits, that could mean:

Making a budget for the first time so you can make sure your paychecks or unemployment benefits are used as wisely as possible.Taking a look at your existing budget and making adjustments that account for the ongoing financial uncertainty the novel coronavirus has caused worldwide.Automating a transfer of money to your savings accounts so you're putting more money in the bank and spending less of it.

Smart financial moves pay off

There are some things you shouldn't do in response to black swan events such as the coronavirus pandemic. Cutting back on investing out of fear is one of them, and reacting on emotion when it comes to your investment choices is another. But the good news is, the financial decisions most Americans are making are good ones. Why not join your fellow Americans in making these smart financial moves, if you can.

The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

Offer from the Motley Fool:10 stocks we like better than Walmart

When investing geniuses David and Tom Gardner have an investing tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

Stock Advisor returns as of 2/1/20

Source: https://www.usatoday.com/story/money/2020/06/12/heres-how-americans-are-changing-their-financial-habits-in-response-to-covid-19/111936302/

News Related

ORTHER NEWS

Trump’s ‘mission accomplished’ moment is premature and deadly. We have not defeated COVID.

Desperate for crowds and adoration, Trump has put his most fervent supporters at risk of getting a deadly disease. Future historians will be astonished. Read more »

NFLPA president JC Tretter says NFL is putting season, players at risk with its coronavirus approach

NFL Players Association president JC Tretter said Tuesday the NFL is putting the 2020 season at risk with its coronavirus approach, calling on the league to better “prioritize player safety.” “Like many other... Read more »

Brazilian President Jair Bolsonaro says he tested positive for the coronavirus

RIO DE JANEIRO (AP) — Brazil’s President Jair Bolsonaro says he has tested positive for COVID-19 after months of downplaying the virus’ severity. Bolsonaro confirmed the test results while wearing a mask and... Read more »

Venice Film Festival forges ahead amid COVID-19 pandemic with reduced lineup

The show will go on for the Venice Film Festival in September, but with a few modifications due to the COVID-19 pandemic. Organizers said Tuesday that they are pushing forward with plans for... Read more »

Amtrak offers buy-one, get-one promotion on its sleeper trains amid COVID-19 — with a catch

Amtrak wants you to have sweet dreams the next time you travel — so much so that it’s sweetening the deal on its sleeper “roomettes.” The rail service is offering a buy-one-get-one-free discount... Read more »

Florida teen treated with hydroxychloroquine at home before dying of COVID-19, report says

FORT MEYERS, Fla. – The family of a 17-year-old Florida girl who died last month from COVID-19 treated her symptoms at home for nearly a week before taking her to a hospital, a... Read more »

Mookie Betts worried MLB coronavirus testing woes could prevent him from ever playing for Dodgers

During nearly four months away from the game, Mookie Betts said he “stayed away from baseball to keep myself sane.” It’s not hard to understand why. The 2018 American League Most Valuable Player... Read more »

Tom Hanks doesn’t get ‘how common sense has somehow been put into question’ with coronavirus

Read more »

Can Gov. DeSantis force Florida schools to reopen amid the coronavirus pandemic? Some school leaders seem doubtful.

PALM BEACH, Fla. — As concern about the state order spread online, some school leaders said: Not so fast. As Florida educators puzzle over how to start the new academic year, Gov. Ron... Read more »

Texas surpasses 200,000 coronavirus cases after 4th of July holiday weekend

AUSTIN, Texas – Texas reached 200,000 total COVID-19 cases Monday, just 17 days after crossing the 100,000 threshold, a figure that took the state nearly four months to hit. The grim milestone came... Read more »