Social Distancing Leads to Overspending, Says WalletHub
A sizable number of Americans are spending more money while social distancing, according to WalletHub’s Coronavirus Shopping Survey, released earlier this week. The survey also found that while 43% have participated in “comfort buying” while in isolation, 57% are worried about package safety in a pandemic.
“During social distancing, about 58 million Americans are spending more than normal, which is concerning considering the dire state the economy is in at the moment,” said Jill Gonzalez, WalletHub analyst. “While some overspending may be attributed to stockpiling essentials, other Americans may be spending beyond their means due to stress or simply boredom.”
Gonzalez noted that comfort buying to relieve the stress of social distancing has been fairly common. “Of those who have engaged in comfort buying, 63% are keeping their purchases below the $150 mark,” she said. “It’s interesting that comfort buying behaviors vary by age. Around 60% of people aged 30 to 44 report comfort buying, compared to just 32% of people over age 59.”
Along with a majority of survey respondents being concerned about package safety, around half care about the state or country from which a package is being shipped,” Gonzalez said. “Nearly 60% of Americans worry about contamination in food deliveries during the pandemic.
“Even though delivery and takeout orders are readily available, some people may be too apprehensive to order,” she added.
While essential purchases figure in online buying during the pandemic, Gonzalez noted that the most common type of non-essential purchase people make is entertainment, “closely followed by alcohol, which might make sense since both are ways to take people’s minds off of the crisis. Despite social distancing protocols, the surge in video conferencing has led people to keep up with their physical appearance more than you might think, as some of the most popular spending categories are clothing and beauty products.”
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- ◦Economy
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