Respondents noted the top reasons for a financial reset included new personal goals, changes to their personal life and new financial goals
Seven in 10 (70%) millennials and Gen Zers say COVID-19, specifically, made them realize they needed to reset and reevaluate how they handle their money, according to new research.
The new study asked 1,000 Gen Z Americans and 1,000 American millennials about the impact of the COVID-19 pandemic and 2020 as a whole on their personal finances.
Over half (52%) of respondents said they wish they did a better job handling their money during the pandemic. In a show of generational difference, millennials were more likely than their Gen Z counterparts to feel like they handled their money poorly, at 59% compared to 46%.
Conducted by OnePoll on behalf of Laurel Road, a digital lending platform and brand of KeyBank, respondents reflected on the pandemic and noted the top reasons for a financial reset included new personal goals (33%), changes to their personal life (32%) and new financial goals (30%).
Although nearly seven in 10 respondents shared they’ve effectively budgeted their money as best they could, given the circumstances of 2020 and quarantine in particular, 60% also said they wish they could improve their budgeting skills, they just don’t know where to begin.
Thirty-seven percent of respondents said they made more of an effort to save more money when they could, with 33% creating a budget and 25% even speaking to a financial adviser about their situations. A further 20% of those polled shared they refinanced their student loans and 19% consolidated their student loans.
And for those polled with student loans (approximately 1,500 respondents), 62% said the federal student loan forbearance has made an impact on their ability to save money during the pandemic.
These quick adaptations during this uncertain time seemed to have paid off, as the average Gen Z respondent saved nearly $600 and the average millennial respondent saved just over $1,000 specifically during the pandemic.
We know COVID-19 has been challenging for us all. For millennials and Gen Z-ers, they too have faced many challenges, but in turn, the pandemic has also prompted an opportunity for a financial reset, said Alyssa Schaefer, Chief Experience Officer at Laurel Road. What’s encouraging to see from our survey results is that so many people have used this time to prioritize their personal finance, including by refinancing their student loans, and actively look to learn new ways to budget and save.