Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Business young shoppers

Gen Z and millennials will have their spending and saving habits influenced by the pandemic. (Photo credit should read Franko Lee/AFP via Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

Apr 11, 2023

The Pandemic Defines the Spending Habits Of a Generation

The pandemic, global unrest, and shifting economic uncertainty have influenced a generation’s spending and saving habits. 

Key Details

  • During the pandemic, Americans alternated between saving and wild spending sprees. While lockdowns prevented spending on partying, food, and entertainment, there were other ways to spend. 
  • Gen Z and millennials have been especially influenced financially by the last several years of uncertainty, leading to erratic spending behaviors. 
  • For some, lockdowns forced them to save, but for others, the stressful environment prompted more online spending than ever. 
  • Experts predict that the events of the last several years could forever influence the financial habits of the younger generation, Business Insider reports. 

Why it’s news

Consumer spending has started to resemble compulsive shopping after the pandemic. During times of high stress, people often turn to something that feels like control—for many, that was shopping. Now that the pandemic has ended, that tendency to shop compulsively may not go away.  While retailers may benefit from the increased number of shoppers, consumers face a new reality—growing debts.

Americans, particularly younger ones, face growing debt levels as the cost of living rises. At the same time, layoffs are spreading from the tech sector, and the labor market is slowing down. 

Millennials’ debt increased by 27% from 2019 to 2022, according to the Federal Reserve of New York. At the same time, younger consumers are accruing debt. Around 2% of debt held by 18 to 29-year-olds is delinquent—or more than 90 days past due, Business Insider reports. 

In addition to credit-card debts from shopping and paying higher bills, younger consumers are also likely dealing with crushing student loan debts. 

However, some did learn from the pandemic rather than taking on more debt. Government stimulus and slowed spending in many sectors led to generally higher savings for most Americans. From the first quarter of 2020 through the third quarter of 2021, Americans accrued around $2.3 trillion in savings, Business Insider reports. 

Some have taken the opportunity to strengthen their savings account. While this may have created new lifelong savers, those who responded to the pandemic by increasing their savings and cutting expenses may have already been at higher income levels. While the pandemic caused Gen Z and millennials to use their savings to survive, the top quartile of earners added $1.5 trillion to their savings during the pandemic, Business Insider reports.

Backing up a bit

Despite high inflation, spending jumped at the beginning of this year, but that shopping spree seems to be declining. Retail spending dropped 0.4% in February, according to a Commerce Department report.

The decline follows a January shopping spree that surprised economists and shifted the Federal Reserve’s plans for reducing inflation. Spending in department stores saw the most significant decline with overall outlays declining 4%. Customers purchased 2.2% less at restaurants and bars and 2% less on vehicles. 

Spending on home improvement and gardening supplies, clothing, and furniture also fell. 

While inflation has declined somewhat, prices are still around 6% higher than a year before, NPR reports. 

Though retail purchasing declined overall, money directed to groceries rose 0.6% and online shopping increased 1.6%. Retail spending remains 5.4% higher than in February last year.

Home / News / The Pandemic Defines the Spending Habits Of a Generation
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com