Pandemic Could Change Spending Habits

The Great Depression, which was just over 90 years ago, changed how many of our parents and grandparents thought about financial security. Now, financial advisors say the pandemic could have a similar impact.

"I think it's been a struggle emotionally for everybody," said Mary Beth Storjohann, a certified financial planner. "I think the habits and the structures that are being put in place now will benefit us over the long run."

In tough times, people often pay closer attention to their budgets and where the money is going. Storjohann sees people coming out of this with a better grasp on their finances.

"I think people are seeing what they can do without," Storjohann said. "What money were you spending to just spend out of comfort, and what things do you really need in your budget?"

"Americans like to spend, so it's a challenge," said Ken Tumin of Deposit Accounts. "I think this will have some lasting effect on that front."

Tumin said it shows people the importance of having less debt, and more in the bank.

"People are realizing the need for an emergency fund and have built up their savings," Tumin said.

Storjohann said the financial decisions people are making because of the pandemic will stick around even after it is over.

"People now will know, and they will go back into regular life more conservatively," Storjohann said.