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Covid Crisis Spawns A More Financially Savvy Generation Eager to Pay Off Debts

Covid-19 has created a more ‘money savvy’ generation with more than a third vowing to be better at budgeting since the pandemic hit, Toluna’s Understanding the 2021 Consumer’ Global Barometer Study has identified.

The bi-weekly index surveyed 1,032 respondents in the UK to reveal the coronavirus crisis has led people to think more carefully about their money.

Research shows that nearly three in 10 (27 per cent) of us have paid off or are planning to pay off debts since the pandemic started. While nearly a fifth of people plan to put money into longer term investments (19 per cent).

Out of those people surveyed, 44 of people said Covid-19 has made them save more money to prepare for a rainy day, while 36 aim to be better at budgeting. Despite the current economic climate, 65 per cent of people in the UK are confident about spending money.

The pandemic was a completely unexpected situation that no one could have ever predicted or totally prepare for,” said Michael Worledge, head of financial services at Harris Interactive. “Many people have been financially impacted by Covid-19 restrictions and repeated lockdowns demonstrating the importance of being money savvy and ensuring our financial health is as strong as it can be.

“Although the economic impact has been great, and we’re far from out of the woods yet, at least people have become more financially responsible as a result. People are trying to save more and wanting to get rid of debt which will help to create a more secure and financially resilient future.”

Life after the pandemic

When lockdown ends and restrictions are lifted, the study indicates people are planning to spend money on activities, such as in store shopping, dining out and personal care activities.

  • 43 per cent of people surveyed can’t wait to visit physical shops again and shop in store
  • 36 per cent of people are looking forward to eating out
  • 35 per cent plan to visit a hairdresser as soon as they’re able to

 

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