LOUISVILLE, Ky. — Americans are slashing their spending, hoarding cash, and shrinking their credit card debt during the coronavirus pandemic.

What You Need To Know


  • Consumers are saving more money and spending less

  • Job loss fears and lack of spending opportunity 

  • Secure a financial plan

“There are consumers that are saving more money now because they are in fear of losing a job, or they have already lost their job and are receiving unemployment payments,” said Aaron McAndrew, a wealth advisor.

But, McAndrew said several factors explain why people are saving more. 

Another factor is simply that opportunities to spend are harder to come by with businesses shutting down to slow down the spread of COVID-19.

“It’s not necessarily that people are consciously saving more money, it’s the fact that there’s so many businesses shut down and closed that consumers can’t spend money.”

If consumers can’t spend money, businesses can’t make money. McAndrew said that most of his clients are small business owners. But, that group is worried about two factors that might lead to a slower return to business as usual for businesses that are reopening.

“The fear of people not jumping right into it right away,” said McAndrew. “We got to remember that these restaurants and businesses are opening back up to limited capacity and with other guidelines that weren’t in place before the pandemic took place.”

McAndrew recommends having a financial plan in place to help cope with crises that result in financial turmoil.

“A financial plan is not preparing you for tomorrow, a plan is preparing you for multiple years down the road to set up an emergency fund for times like this.”