How Covid-19 pandemic gradually changes the millennials’ lifestyle
Even before Covid-19 threw a monkey wrench into the gearbox of the global economy, the Millennials were already struggling to make the needs meet. With the pandemic in full swing, many find it impossible to do so. They were the first generations in the last two centuries that were living worse than their parents. The economy, run by the Boomers for the Boomers, treated the Millennials like a redhead stepchild. Well-paying blue-collar jobs were shipped off to China decades ago and even white-collar jobs' salaries saw a steady decline in purchasing power. On top of that, those who qualified for what little jobs there are were crippled by the college debt. And then the pandemic hit and things took a turn for the worse. Still, not everything is as black as some would imagine. Some changes to the Millennials’ lifestyle were actually positive.
Increase in Savings
One thing that baffled the expert is the unexpected rise in saving for both the Millennials and Generation Z since the start of the pandemic. Around 18% of the Millennials and 16% of Generation Z started saving more. It was not just retirement funds that saw the increase, but debt payment as well, including credit cards and student loans. On the other hand, 8% of Millennials and 15% of Gen Z stopped their contribution to retirement funds altogether. Hopefully, they will restart them once the economy starts recovering. Still, the question remains, where did the extra cash needed for the saving increase in the first place come from? As it turns out, the Millennials used a mix of traditional and not so traditional means to achieve that.
Living Arrangements
Faced with massive layoffs and pay cuts, many Millennials sought a solution in changing their living arrangements. Those who could moved back with their parents. Those who couldn’t started living with roommates. However, many of the Millennials already had families of their own and neither of those two options wasn’t available to them. That meant either moving into smaller and cheaper houses and apartments or, in worst cases, defaulting on their mortgages. Fortunately, the wave of foreclosures was stalled by the measures taken by the federal government and the financial assistance they offered to people in dire need. The downside is that not all mortgages qualify for the moratorium on foreclosures.
The Use of Cryptocurrency
The Millennials are at the forefront of cryptocurrency implementation. From using bitcoin for iGaming to paying for groceries with them, the Millennials are embracing digital currency faster than any other generation. In part, this is due to modern trends, as bitcoin becomes more common for digital transactions. However, there is also a dose of financial savvy involved. Bitcoin, as well as other crypto coins, continues to gain in value during the covid-19 pandemic. The Millennials see it as an investment, one of a few investment options available to them. Unlike the older generation, they don’t have much of a disposable income to sink into their 401(k), so using bitcoin is a both convenient and financially wise decision.
Restaurants vs. Cooking
That cooking is a far better option than eating out, both financially and health-wise, is no news. The question is can you find enough time to do it, not to mention willpower. People work long hours and when they come home, they need some time to relax, unwound, and spend some time with their families. Getting into the kitchen and starting meal prep isn’t the image of relaxation for most people. Still, the need must when the devil drives and many didn’t have any other option. Eating out several times a week was simply too demanding on the family budget and unsustainable, just like the visit to the local Starbucks every morning on the way to work. Brewing your own is not only cheaper but yields a far superior coffee too. Ergo, kitchen, here we come.
Entertainment
Another area where the Millennials were forced to make cuts was entertainment. Instead of going to the cinema once a week or buying a dozen games on Steam sale, they used that money for their 401(k) plans. Some of these decisions, like giving up on cinema, theater and games were eased by the lockdowns. But that still left them with a lot of free time. Again, some turn to traditional solutions, like reading or taking up a hobby. Some experienced the unexpected windfall when funds set aside for traveling suddenly became free, due to travel restrictions. Since the romance Valentine weekend was canceled, might as well redirect the money to the savings account.
Shopping
pThe Millennials were already known as a thrifty generation even before the pandemic, but since the Covid-19 hit, they took it to a whole new level. Buying random junk from Amazon was the first victim of their new lifestyle. Ironically, since online shopping usually offers better deals than local shops, they ended up giving even more money to Jeff Bezos, but spending less in general due to the savings they made. This is great news not just for Mr. Bezos, but for the Millennials as well. As most consumers say it will be a while before they feel safe shopping in malls, this is one situation that will persist long into the future.
