Millennials and Gen Z Financial Confidence Rises to 60% During COVID-19

Despite the circumstances of the global pandemic, millennials and Generation Z were more confident financially than they were before 2020. According to a survey conducted by OnePoll on behalf of Laurel Road, a digital banking platform of KeyBank, 6 of 10 (60%) within said age group are now more confident financially than they were before the start of the pandemic.

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The poll asked 2,000 Millennials and Gen Z Americans born between 1981 and 2003 about their new spending and saving habits. Respondents said they feel greater financial confidence as a result of COVID-19.

The survey also found that these generations are changing the way they manage their personal finances, Good News Network noted. About 58% of those surveyed created new savings goals because of changes in their spending habits. Additionally, over 30% admitted that they are budgeting for the first time, while 39% are using new methods such as apps or spreadsheets to better track their budgeting habits.

Millennials and Gen Z were also able to save more during the pandemic. The survey found that 61% were able to save at least $ 1,000 between early 2020 and early summer 2021, and one in ten saved more than $ 5,000.

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Savings surged during the pandemic as Americans cut spending, and stimulus checks and unemployment benefits helped boost incomes. The personal savings rate in the United States jumped to a record 32.2% in April, from 12.7% in March, according to the United States Bureau of Economic Analysis. At the same time, consumer spending fell 12.6%.

With these savings, Gen Z and Millennials said they would invest more money to pay off their student loans (38%), spend it on vacation (37%), pay their rent (32%), and make payments. by credit card. debt (29%). More than one in five respondents also said that if they had an additional $ 1,000 for the remainder of 2021, they would put it in their savings account.

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“It is encouraging to see that young Americans are feeling more financially confident throughout what continues to be a very difficult and difficult time, and that so many of them are focused on sustaining their hard-earned savings. Said Alyssa Schaefer, Experience Manager at Laurel Road. , as reported by Good News Network.

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Last updated: September 22, 2021

This article originally appeared on GOBankingRates.com: Millennials and Gen Z Financial Confidence Rises to 60% During COVID-19