CHARLOTTE, N.C., Oct. 21, 2020 /PRNewswire/ -- LendingTree, the
nation's leading online financial services marketplace, and Stash,
the all-in-one personal finance app helping +5M Americans1 reach their financial
goals, today unveiled a comprehensive look at the coronavirus
pandemic's impact on consumers' personal finances through a
three-part series, painting a full picture of Americans' financial
health at the peak of the pandemic through a survey of nearly 5,000
consumers.
- Part 1 focuses on how the pandemic and its ensuing economic
repercussions impacted Americans' quality of life and brought
various financial challenges.
- Part 2 dives into the ways consumers changed the amount of
money they spend in different areas, and which demographics were
able to stash more money in savings.
- Part 3 highlights behavior among investors specifically,
including changes to risk level, portfolio diversification and
amount invested.
Key findings from the reports:
- Due to the economic impact of the COVID-19 crisis, 1 in 4
people expect to retire later than anticipated. That's
especially true for those who make less than $35,000 (34%) and Gen Xers (29%), as well as
Latino (30%) and Black consumers (28%).
- People of color are facing heavy financial challenges amid
the pandemic. In fact, 64% of Black consumers and 62% of
Latinos cited facing at least one struggle due to the pandemic,
compared with 49% of their white peers.
- The top three things that consumers have increased spending
on during the pandemic are face masks (76%), groceries and
necessities (60%) and digital entertainment subscriptions (40%).
The top three things that consumers have decreased spending
on are dining out and/or nightlife (67%), travel (58%) and car
rentals or purchases (25%).
- More than 1 in 5 consumers (22%) began investing for the
first time during the coronavirus pandemic. That includes those
who aren't traditionally big investors — women (25%) and young
adults (28% of Generation Zers).
- Men were more likely to invest more money — and take more
risks — during the pandemic than women. Women tended to
maintain pre-pandemic levels.
"The coronavirus pandemic illuminated what we already know: most
Americans' margin for financial error is tiny, and that's evident
in the fact that nearly half of consumers were unprepared for the
pandemic and its negative economic repercussions," said
Matt Schulz, chief credit analyst at
LendingTree. "The good news is many consumers learned from their
lack of preparation and are more focused on building up their
savings for the next emergency. Still, it's all the more clear that
there is a massive wealth gap in this country, and some populations
– especially people of color and low-income individuals – are
having trouble paying this month's bills, let alone setting extra
money aside."
"The last few months have been ripe with paradoxes. While some
Americans seamlessly transitioned to remote work, millions of
others faced unforeseen job loss. Similarly, certain groups
invested their money for the very first time, while others
struggled to afford everyday necessities," added Mindy Yu, director of investments at Stash. "As
we continue to experience the economic fallout of the pandemic,
it's clear that prioritizing and supporting Americans' financial
health remains a top priority."
For a full look at the three-part series, visit
https://lp.stash.com/news/stash-and-lendingtree-team-up-to-uncover-covid-impact-on-americans-personal-finances/.
Methodology
This survey was conducted online within
the U.S. by Stash and LendingTree using SurveyMonkey technology.
The survey conducted in August 2020
was completed by 4,955 people2.
Stash is a Paid Partner of LendingTree, LLC NMLS# 1136.
LendingTree is a minority Shareholder of Stash.
About Stash
STASH is pioneering the future of personal
finance by building an all-in-one financial home that combines
banking, investing, advice, and technology to help anyone create a
better life—no matter their network or net worth. Unlike
traditional financial institutions, STASH is solving the personal
saving and wealth crisis by helping over 5 million Americans avoid
fees, take control of their finances, and achieve their goals.
Rather than offer individual financial products, STASH offers
all-in-one subscriptions that prioritize affordability,
accessibility, education and simplicity and include personal
investment accounts, Traditional and Roth IRAs, custodial
investment accounts, banking services, checking accounts and debit
cards. STASH has also given away over 16 million fractional shares
through the world's first Stock-Back® rewards program. (*Bank
Account Services provided by Green Dot Bank, Member FDIC.) Based in
New York City, STASH launched in
October 2015 by Wall Street veterans,
Brandon Krieg and Ed Robinson. For more information, visit
www.stash.com.
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online marketplace that connects consumers with
the choices they need to be confident in their financial decisions.
LendingTree empowers consumers to shop for financial services the
same way they would shop for airline tickets or hotel stays, by
comparing multiple offers from a nationwide network of over 500
partners in one simple search and choosing the option that best
fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student refinances, credit cards, insurance and more. Through the
My LendingTree platform, consumers receive free credit scores,
credit monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. For more information, please
visit www.lendingtree.com.
1This is not an endorsement or a statement of
satisfaction by any Stash client and is defined by the number of
clients who have e-signed. Stash offers access to investment and
banking accounts under each subscription plan. Each type of account
is subject to different regulations and limitations. See the
Advisory Agreement and the Deposit Account Agreement for more
information.
2Of the 4,955 individuals who completed this survey,
51% identified as men, 47% identified as women, 1% identified as
nonconforming/nonbinary and 1% didn't disclose.
Generations are defined as the following as of August 2020:
- Gen Z: Ages 18 to 24
- Millennial: Ages 25 to 43
- Gen X: Ages 44 to 55
- Baby boomer: Ages 56 to 74
- Silent generation: Ages 75 and older
Of the respondents, 14% identified as Latino, 62% identified as
white, 21% identified as Black, 5% identified as Asian, 3%
identified as American Indian or Alaska Native, 1% identified as
Middle Eastern or Northern African, 1% identified as Native
Hawaiian or other Pacific Islander and 5% identified as other.
(Respondents were able to select all races that applied.)
Of the respondents, 24% reported earning less than $35,000 in annual household income, 18% reported
earning between $35,000 and
$49,999, 21% reported earning between
$50,000 and $74,999, 15% reported earning between
$75,000 and $99,999, and 23% reported earning $100,000 or more. (Totals don't add up to 100%
due to rounding.)
Media Contacts:
Megan
Greuling
megan@lendingtreenews.com
Vera Hanson
vera.hanson@stash.com
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SOURCE LendingTree.com