Coronavirus has turned America into a nation of savers. But how long will it last?

7330E97C-B199-49B5-985A-4B2FD99CD7F7

With a busy life in Los Angeles, Anna McKitrick has trouble saving. The 25-year-old waitress and aspiring actress estimates she spends $200 a month on coffee, snacks, on-the-go meals, and other purchases she could live without.

Now thanks to the coronavirus, McKitrick is stuck in her childhood home in New Jersey, living rent-free for the foreseeable future — and using the opportunity to permanently kick her impulse spending habit.

Without bills to pay and thanks to a surprisingly large tax refund, she’s already saved several thousand dollars. She says she’s also reevaluated what is actually important to her. “I just realized how much money I was wasting instead of putting it towards my priorities, like building a bigger emergency fund and paying for experiences I want to have,” says McKitrick.

It’s no secret that Americans struggle to save for the future. A study from JPMorgan Chase found that about two-thirds of us do not have the recommended six weeks of take home pay set aside for an emergency. And a recent Money/Synchrony Bank study revealed that 36% of people earning between $75,000 and $100,000 still worry about unexpected expenses. But now the coronavirus is forcing millions of people to cut down on unnecessary spending in a way that they’ve never been able to before.

Continue reading… “Coronavirus has turned America into a nation of savers. But how long will it last?”

0