- The average employee in Maryland has saved $255 per month since the start of the pandemic.
- Workers are investing their savings in riskier investments.
Despite millions of Americans having been laid off by the pandemic, in an economy that suffered the worst contraction on record, it appears that those fortunate to be full-time employees are not only flush with cash (as a result of spending little, stimulus checks and government cash infusions), but they are eager to spend once lockdown restrictions are ended. And not only are they keen on spending big, but they also appear to want more money from their employers in order to do so. A survey of 5,000 Americans by financial support and lender, CreditNinja, has revealed that 44% of Marylanders who are full-time employees expect a pay raise this year.
Moreover, within the same research, CreditNinja found that the average full-time employee in The Old Line State has saved $255 per month since the start of the pandemic (March 1st 2020). What might seem counterintuitive given the current state of the economy, the Consumer Credit report found that credit card debt in the US has plummeted since the start of the pandemic. Other reports have stated that consumers are sitting on a trillion dollars of cash.
Other than increase savings and lower credit card debt levels, there have been other signs of a post-pandemic boom in spending. Retail sales jumped at the beginning of the year, and new unemployment claims have declined recently, as everyday investors have thrown money into risky investments – recently, a trading card featuring the quarterback Tom Brady sold for a record $1.3 million, the value of Bitcoin has hit $1 trillion and Christie’s sold a digital artwork by an artist known as Beeple for $69.3 million.
With people having to adjust to a different sense of normal during these unprecedented times, many have adapted their everyday habits in order to reduce the risk of contracting the virus. The survey found that over 1 in 5 (23%) say they are avoiding using cash these days due to the coronavirus risk.
CreditNinja’s research also found that, with many economists unable to agree when exactly the economy will rebound, 86% of respondents say they intend on continuing to save a portion of their available income through 2021 as a precaution. This could mean saving on small costs, such as cooking rather than ordering takeout, not joining a gym and continuing to work out from home, walking to the grocery store to save on fuel, or simply having a night in instead of a night out.