Many Americans Say They Spent Less, Saved More in 2020

Many of us are likely at least a little more frugal with our money now than we were one year ago.

The pandemic and economic downturn has many Americans thinking more carefully about their spending habits. A new survey by Travis Credit Union finds half of respondents spent less money in 2020 than in 2019. The top reasons for spending less: financial uncertainty, fewer opportunities to spend, or the loss of a job.

“A lot of their lack of spending wasn’t because they didn’t want to spend. It was more based out of fear as if something bad were to happen to them, how could they protect themselves with their money,” Financial expert Derrick Kinney told KTRH.

He advises you to only buy what you need and continue to save if you can, so you can invest once the economy starts to bounce back.

“People began to realize quickly ‘look if I don’t need this, and what if I lose my job or a neighbor or family member loses their job, I’m going to need a cushion to fall back on,’” Kinney added.

The survey found most were optimistic about wider economic recovery in 2021.

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