This video takes a personal look into how I am spending my money during the COVID pandemic. Our household income has fallen about 30% so I talk about some of the ways that we are NOT spending money. We are not necessarily saving money, but we are watching how we spend it. We are managing our cash flow through Federal loan deferrals, stimulus checks, car insurance discounts, savings on gas, transportation, entertainment, and childcare costs.
Spending and buying habits have shifted due to the shutdowns. People are spending more on groceries, take out, and online shopping. People are spending less on entertainment, transportation and gas, and other general items. According to the Bureau of Economic Analysis, consumer spending fell 7.5% in March 2020 from the previous month.
We are taking advantage of parks, our yard, and basic art supplies to keep the kids occupied. We are learning to play frisbee, sidewalk chalk art, ride bikes, and lots of arts and crafts. When things open up, we’ll be using our passes to the zoo and recreation center.
We will continue to examine our purchases and see if we really need them. Saving cash and reducing expenses will get us through the next several months until my husband’s job increases his hours again and I am finding more classes to teach. Of course, when you need new underwear, you get new underwear.