How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Snapshot of American Consumer Amid Coronavirus Pandemic

Written by

Edited by

Dan Shepard

Updated on: May 13th, 2021

Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

While staying indoors more might lead to greater online spending, consumer spending is down amid the coronavirus pandemic.

The inaugural quarterly Consumer Trends Report from e-commerce platform Jungle Scout revealed that 43% of consumers said their overall spending has decreased.

How else have consumers shifted because of the COVID-19 crisis? Here’s what we learned.

Financial stress is causing consumers to tighten their purse strings

With 9.8 million people unemployed across the U.S. as of April, many have suffered financial setbacks. The Consumer Trends Report survey showed:

56% of U.S. consumers said they’re living paycheck to paycheck
48% said they’ve experienced unforeseen financial setbacks in the past three months
23% said they’ve received some form of a loan (federal, private, family or student) in the past three months
22% said their income is lower than it was three months ago

Because finances are tight, American consumers have been scaling back their spending. In fact, nearly 3 out of 4 are becoming more mindful of where they’re spending money, and 70% are shopping for products with a less-hefty price tag.

Priorities: Due to the pandemic, Americans have been prioritizing family, physical well-being and mental health, finances and pets, while putting education and traveling on the back burner.

Top money stressors in 2021: Savings, income, monthly expenses

Financial stress is on the rise, so the Consumer Trends Report examined financial stressors among Americans.

Stressor: Not having enough

57% cited not having enough emergency savings
52% cited not having enough saved for retirement

Stressor: Lacking a steady income

50% cited an up-and-down income
39% cited job security

Stressor: Paying monthly expenses

46% cited utility bills
42% cited rent or mortgage
41% cited medical bills

Stressor: Covering debt

40% cited credit card debt
39% cited feeling they’ll always be in debt

Cost-consciousness: Sixty-nine percent usually research products before deciding to buy, while the same percentage typically make shopping lists or do some sort of planning before making a purchase. The silver lining? That money they’re saving is going into growing their money.

How Americans are getting financial support — and how they handle setbacks

The fact remains — 43% of those surveyed said they’re depending on government stimulus checks. In addition to the types of loans mentioned above, here are the other forms of financial support Americans are receiving or using:

19%: credit cards
6%: grants and scholarships
4%: retirement savings or home equity

Should finances be tight from an unexpected expense or a drop in income, 45% of those surveyed said they’d pull from savings or scale back on expenses to cover a shortfall. But 34% said they wouldn’t be able to afford a setback and would rely on borrowing money, using a credit card or taking out a loan.

Methodology: Austin, Texas-based Jungle Scout surveyed 1,005 consumers between Jan. 26 and Jan. 29, 2021, about their spending behaviors and preferences during the COVID-19 pandemic.