Report: More consumers dipping into savings because of the COVID-19 crisis

by Talk Business & Politics staff ([email protected]) 412 views 

The COVID-19 (coronavirus) pandemic is causing consumers to become more worried about running out of money, and more Americans are dipping into their savings accounts and emergency funds to cover expenses.

Two weeks after a similar survey was published March 23, LendEDU’s second coronavirus survey of 1,000 adult Americans found a little more than half of participants said they had already tapped their savings. That’s up from 44% in a similar survey taken just two weeks earlier.

LendEDU, which runs a marketplace for student and personal loans, conducted the survey of 1,000 adults on April 1. The previous survey was done on March 18.

Other key findings include:

  • 12% of Americans have lost their jobs due to COVID-19 compared to just 6% from the first survey two weeks ago. 24% of Americans have seen no changes to their job compared to 35% the first time, while 13% have been furloughed compared to 11% two weeks ago.
  • Money spent on food and supplies increased by 88% from two weeks ago, going from $335.65 to $631.06.
  • 51% have had to use money from a savings account or emergency fund compared to 44% from the first survey.
  • 72% are worried about their retirement savings compared to 63% from two weeks ago.
  • 30% of eligible respondents will save the $1,200 payment, while 30% will spend it on food/supplies, and 20% will use it for a rent or mortgage payment.
  • Fewer Americans are worried about making their monthly student loan payments compared to two weeks ago, perhaps a sign that recent measures are working to alleviate financial stress.