How will we spend money differently after lockdown?
The Covid-19 coronavirus pandemic has affected the world in ways never seen before.
As well as the healthcare and social distancing implications, the way that people spend their money has altered dramatically.
Will spending habits go back to normal once all the lockdown restrictions are lifted, or will new trends emerge?
It’s no secret that shoppers have been doing more online shopping than ever before while the majority of shops were closed during the peak of lockdown.
Now that people have seen how easy it is to order something and have it arrive the following day, will they go back to the high streets?
Everything from a new TV to a bag of sugar is available at the click of a button through a wider range of websites than people may have thought. The British Retail Consortium predicts that footfall in UK shops will be down 77 per cent across the whole of 2020. The future of shopping looks to be more heavily online than ever before.
change in subscriptions
Lots of subscriptions, like clubs and gym memberships, weren’t available during lockdown. Direct debits were paused on cancelled for several months. Now, some people are now finding that they don’t have a huge desire to return to the services they once enjoyed. Free at-home workouts have replaced the gym for some.
On the other hand, the rise of more and more streaming services have led more people to take out subscriptions. Disney+ launched in spring, and Netflix and Amazon Prime have helped to keep the boredom away during long months indoors.
Most spending on experiences has dramatically declined during spring and summer of 2020, with closures of everything from restaurants to tourist attractions.
Now, attractions and services are opening up again. People seem keen to get out after spending much of the spring stuck indoors. Seaside resorts in the UK have been booming during the summer holidays, proving that the public want to start spending money on experiences again.
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Travel has been absolutely decimated during the pandemic, with planes grounded across the world. Now, holidaymakers are split into two camps: those who cannot wait to go abroad again, and those who are weary of the new risks involved with going to a different country.
Travel experts predict there will be more staycations, more eco-friendly travel and trips to remote locations in the future. Trips closer to home may be cheaper than big international breaks, but the travel industry seems sure that all destinations will be on the agenda in 2021.
Everyone has been sitting at home, staring at the same four walls for a long time. In fact, 85% of British people have done home improvement work during lockdown according to Aviva.
That could mean that 2020 and 2021 will see a home improvement boom, as people seek to improve their properties with new designs or extensions.
Many households have had to deal with reduced incomes due to redundancies or reduced payment schemes, like the furlough scheme in the UK which gives employees 80% of their pay from the government.
Adapting to a smaller budget means people have become used to having less in their lives. These people might not want to go back to spending as much, even once they are back in full-time employment. That might mean less impulse purchases.
Do you think your spending habits will change after lockdown? Let us know what you think on social media.
sync. can help you get to grips with your spending habits by gathering information from all your bank accounts into the sync. app, so you can see all your money, all the time. Download the app for iPhone, Android or Huawei.
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