Americans are cutting back on spending amid concerns over the health crisis.
A new report indicates the majority of Americans are not spending as much money as they did before the coronavirus outbreak. Greg McBride is the Chief Financial Analyst with bankrate.com, which carried out the survey.
“I think this validates the fact that yes, the U.S. economy is in a recession,” McBride said.
McBride says the higher the income, the more they're cutting back. The survey indicates middle to upper class Americans are worried about their investments amid the stock market drop.
“This is not going to be a short economic interruption. This is going to be a pretty significant downturn and one that’s going to take a while to climb out of,” McBride explained.
One bright spot: a majority of Americans didn't bail out of the stock market. McBride says you can do a lot of damage to your long-term financial security by knee-jerk reactions.