Two out of three (65%) Millennials say the COVID-19 pandemic has actually had a positive effect on their finances, according to a new national survey of more than 2,000 U.S. adults (aged 18-39) by Money Under 30.
A sharp increase in online shopping among homebound Millennials and Gen Z during the pandemic apparently did not outweigh the savings they accumulated by not going out. The unexpected boon to finances results from 69% saying they were spending less money overall, even as boredom (40%) and depression (20%) contributed to the significant uptick in online shopping, both for groceries (53%) and non-essential items (57%).
Millennials made the biggest savings on eating out (52%), transportation (47%) and nights out drinking (30%). Millennials also saved on vacations (28%) and gym membership (21%).
“It seems that a lot of Millennials didn’t get the recession memo,” said Rebecca Greig, managing editor of Money Under 30. “For the Avocado Toast generation, who value experiences over material wealth, it’s unsurprising that they made the biggest savings on going out, whether on barista-brewed coffee, dinner and cocktails, or the Uber ride home after a night of bar-hopping.”
Investing is best
In what seems like good news for building retirement savings, one of the major finds of the survey is that 61% of Millennials think now is a good time to invest. And younger Millennials are proving that investing is not an old man’s (or woman’s) game: 70% of under-30s are interested in learning how to invest compared to 55% of those 30-plus.
One in five (20%) say they are planning to start investing because of the pandemic, with 72% of women interested in learning more about investing (or doubling down on existing investments), compared to 82% of men.
“The stock market has seen more jumps and falls this year than the average rollercoaster but it’s one that Millennials are only too keen to ride,” Greig said. “Months of staying home with an uncertain future has encouraged young people to take stock of their finances and put their faith in the markets.”
Relative to men, women are also thinking more about their finances: 64% of women compared to 57% of men.
Changing how people work
COVID-19 has also had a dramatic effect on how Millennials work: 68% of those surveyed said the pandemic had affected their job with one in three (33.5%) newly working from home and another third (34%) facing furloughs, reduced hours, and/or salary, or job losses.
But working from home comes with its own economic benefits: 78% of Millennials working from home said their overall outgoings decreased compared to 60% of those working from their regular place of work as higher home spending on electricity, groceries and coffee is offset by extensive savings on transportation and eating out.
Money Under 30 is an independent personal finance site providing free advice for young adults wanting to make informed decisions about where their money goes. A summary of the survey, conducted via SurveyMonkey May 11-12, may be viewed here.