How Has the COVID-19 Pandemic Changed Money Advice?
How Has the COVID-19 Pandemic Changed Money Advice?
Jenny Rose Spaudo Mon, June 27, 2022,
Since the start of the pandemic, Americans have endured an economic rollercoaster with fluctuating interest rates, massive layoffs and skyrocketing inflation. It’s no surprise, then, that around half of non-retired adults say the pandemic has made it harder for them to achieve their financial goals, according to the Pew Research Center.
So how can you best manage your finances in today’s uneasy economy? GOBankingRates spoke with several financial experts to see how the pandemic has changed their money advice.
Be Careful With Easy Online Spending
When lockdowns began, in-person shopping shrank while online shopping rose to new heights. In 2020 alone, e-commerce sales increased by 43%, according to U.S. Census data.
But the ease of online shopping can also make it more tempting to spend, said Tom Siomades, CFA and chief investment officer of AE Wealth Management.
“I believe the pandemic has further eroded people’s ability to gauge value and their view of money,” he said. “The pandemic accelerated all things online. People want stuff now, paying with electronic money. They no longer save or, worse yet, have the discipline to save. They don’t consider the cost–only convenience.”
While many Americans have increased their online spending, Brian Meiggs, founder of the personal finance site My Millennial Guide, said the pandemic is also forcing people to take a more practical approach to their personal finances.
“The pandemic has highlighted the need of having a budget, building emergency savings, and creating a financial plan that suits their lifestyle,” he said.
Timeless Financial Management Principles Still Apply
Christopher Drew, an investment advisor representative with Drew Capital Management, believes it’s more important than ever to follow timeless money management principles. With inflation at astonishing highs, Drew encourages his clients to spend less and save more.
“Be more cautious about your spending habits due to the increase in inflation,” he warned.
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https://finance.yahoo.com/news/covid-19-pandemic-changed-money-130041569.html