NEWS PROVIDED BY MagnifyMoney.com
CHARLOTTE, N.C., Dec. 10, 2020 /PRNewswire/ -- More than 4 in 10 consumers with emergency savings have had to tap into those funds during the coronavirus pandemic, according to the latest MagnifyMoney survey.
MagnifyMoney surveyed more than 1,000 consumers to find out how the pandemic has affected emergency funds, looking at everything from balances to when people think they should be used.
Key Findings:
43% of consumers with an emergency fund have used that money during the coronavirus pandemic. That number jumps to 64% for those who were laid off or furloughed. Even 26% who didn't lose income needed to dip into savings.
54% of those with an emergency fund have taken on debt rather than use that money. When asked why, 28% noted it's taken them a long time to build up the fund, so they were reluctant to use the money.
There are various scenarios in which consumers aren't willing to use their emergency funds. For example, 42% wouldn't pay off debt using the money in their fund, while 24% wouldn't be willing to use their fund to cover living expenses after a job loss, which is traditionally one of the primary reasons to have an emergency fund.
Overall, 54% of consumers have an emergency fund. However, there's a divide among gender and income. Men are 38% more likely than women to have an emergency fund. And while 83% of those who make $100,000 or more have one, just 30% of those who make less than $25,000 a year said the same.
"The pandemic and the lockdowns caused a surge in unemployment, and the unemployment rate remains elevated," said Ken Tumin, founder of DepositAccounts. "Many American households that have experienced a job loss had to tap their emergency funds. Even if they were able to avoid drawing from their emergency fund, saving has become more challenging."
To view the full report, visit: https://www.magnifymoney.com/blog/banking/emergency-funds-pandemic-survey/.
Methodology
MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,038 Americans, with the sample base proportioned to represent the overall population. We defined generations as the following ages in 2020:
Generation Z: 18 to 23
Millennial: 24 to 39
Generation X: 40 to 54
Baby boomer: 55 to 74
The survey also included responses from the silent generation (ages 75 and older). However, their responses weren't included in the generational breakdowns due to low sample size among that age group.
The survey was fielded Oct. 19 to 21, 2020.
About MagnifyMoney
MagnifyMoney.com, a subsidiary of LendingTree, makes it easy for consumers to shop for the best financial products and get answers to their most important financial questions. MagnifyMoney's unbiased advice and comprehensive product database helps millions of people compare credit cards, loans, checking accounts and savings accounts. MagnifyMoney's newsroom of personal finance experts is dedicated to helping people save money and lead financially healthier lives through strategies and tips for avoiding fees, getting out of debt, paying off student loans, avoiding consumer scams and other financial topics. MagnifyMoney was launched in 2014, was acquired by LendingTree in 2017, and is based in New York, NY. For more information, please visit www.magnifymoney.com.
ROI Rocket: US Households Under Increasing Stress From Pandemic Surge And Related Financial Hardships
Despite these trends, the prospect of a COVID-19 vaccine has improved the public's long-term outlook
NEWS PROVIDED BYROI Rocket
DENVER, Dec. 10, 2020 /PRNewswire/ -- About one in eight U.S. adults (12%) report a near-intolerable level of stress due to the pandemic directly or its impacts, according to a new survey by ROI Rocket, a leading provider of market research-based consulting services. This figure is up from one in ten (10%) as recently as September.
The rise in household stress stems from a number of COVID-19 related causes, notably, a 25% increase in households reporting coronavirus cases and a 9% increase in households experiencing new financial hardships such as job loss or reduced work hours. The percentage of households going through these ordeals is now up to 8% for COVID-19 cases and 31% for layoffs and other, similar financial difficulties.
Over two in three Americans (71%) says they're experiencing pandemic-related stress of one sort or another. The most prevalent type of stress is mental or emotional (53%), followed by financial (40%) and physical or medical (26%). The latter two types of stress have reached new peaks compared to the beginning of the quarter.
The increase in financial stress since September has been especially sharp in the wake of the current coronavirus resurgence. Americans are increasingly likely to go into debt to get by day-to-day. About two in five (43%) now report dealing with financial pressures by taking on new or additional credit card debt, borrowing from friends or family, selling personal items they wouldn't have sold otherwise or engaging in other unwanted activities like taking payday loans in response to pandemic-related life events. This percentage is up about 12% compared to about four months ago.
The one bright spot in the data is that the promise of a COVID-19 vaccine has improved the public's outlook on how soon life will return to 'normal.' As late as last month, nearly three in five Americans (56%) estimated a full recovery would take over a year, or alternately, never occur. That number is down to about two in five (41%) this week.
For the growing segment of the public more stressed-out and financially extended than ever, a vaccine and the hoped-for economic rebound can't come fast enough.
ABOUT THIS RESEARCH
This study of 1,228 U.S. residents aged 18 and older was fielded between November 24 and December 7, 2020. The results have an associated margin of error of +/- 2.8% at the 95% confidence level in the most conservative case. This means the results come within plus or minus 2.8% of the results that would have been obtained given a census of all qualified individuals. Sample collection was balanced to U.S. Census figures for gender, age, race/ethnicity and household income.
ABOUT ROI ROCKET
Founded in 2007, ROI Rocket is a leading provider of full-service market research, marketing and sales automation, and digital agency support with offices in Denver, CO, Vancouver, WA, and Jacksonville, FL
Despite these trends, the prospect of a COVID-19 vaccine has improved the public's long-term outlook
NEWS PROVIDED BYROI Rocket
DENVER, Dec. 10, 2020 /PRNewswire/ -- About one in eight U.S. adults (12%) report a near-intolerable level of stress due to the pandemic directly or its impacts, according to a new survey by ROI Rocket, a leading provider of market research-based consulting services. This figure is up from one in ten (10%) as recently as September.
The rise in household stress stems from a number of COVID-19 related causes, notably, a 25% increase in households reporting coronavirus cases and a 9% increase in households experiencing new financial hardships such as job loss or reduced work hours. The percentage of households going through these ordeals is now up to 8% for COVID-19 cases and 31% for layoffs and other, similar financial difficulties.
About one in eight U.S. adults (12%) report a near-intolerable level of stress due to the pandemic.
Over two in three Americans (71%) says they're experiencing pandemic-related stress of one sort or another. The most prevalent type of stress is mental or emotional (53%), followed by financial (40%) and physical or medical (26%). The latter two types of stress have reached new peaks compared to the beginning of the quarter.
The increase in financial stress since September has been especially sharp in the wake of the current coronavirus resurgence. Americans are increasingly likely to go into debt to get by day-to-day. About two in five (43%) now report dealing with financial pressures by taking on new or additional credit card debt, borrowing from friends or family, selling personal items they wouldn't have sold otherwise or engaging in other unwanted activities like taking payday loans in response to pandemic-related life events. This percentage is up about 12% compared to about four months ago.
The one bright spot in the data is that the promise of a COVID-19 vaccine has improved the public's outlook on how soon life will return to 'normal.' As late as last month, nearly three in five Americans (56%) estimated a full recovery would take over a year, or alternately, never occur. That number is down to about two in five (41%) this week.
For the growing segment of the public more stressed-out and financially extended than ever, a vaccine and the hoped-for economic rebound can't come fast enough.
ABOUT THIS RESEARCH
This study of 1,228 U.S. residents aged 18 and older was fielded between November 24 and December 7, 2020. The results have an associated margin of error of +/- 2.8% at the 95% confidence level in the most conservative case. This means the results come within plus or minus 2.8% of the results that would have been obtained given a census of all qualified individuals. Sample collection was balanced to U.S. Census figures for gender, age, race/ethnicity and household income.
ABOUT ROI ROCKET
Founded in 2007, ROI Rocket is a leading provider of full-service market research, marketing and sales automation, and digital agency support with offices in Denver, CO, Vancouver, WA, and Jacksonville, FL
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