Monday is time to Motivate!June 15, 2020 Will the COVID-19 Pandemic Make Us Better Savers? The coronavirus-induced economic slump has seen historic increases in unemployment, small business uncertainty, and stomach-twisting market hikes and evaporations. All this combined with fears of a second, potentially larger wave of COVID-19 infections, and it can get hard to get motivated about much of anything these days. But if you look to history, especially the generation that grew up during the Great Depression, there are some inspiring takeaways worth keeping in mind. One of the most prevalent is the fact that this generation became fastidious savers. Whether it was actual money or an old pair of clothes, those who lived through the Great Depression understood the value and necessity of saving and reusing what they already had. And there’s already evidence the COVID-19 Pandemic is inadvertently spawning a frugality movement and perhaps a whole new generation of savers. In April of 2020, the US Personal Savings Rate rose to 33% up from 12.7% in March and 8.2% in February. This is the largest personal savings rate increase since record-keeping began in 1959. As a society, we’ve been long overdue for a course correction in our spending habits. With nearly 80% of Americans living paycheck-to-paycheck and 1/3 of citizens with $0 in their savings accounts, the loss of income has been a painful reality check. Having said that, it’s not all doom and gloom out there! Being proponents of positivity, we’re sharing the 5 most important lessons learned during the Great Depression and how we can implement them for today.
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