As people continue to worry about money during the COVID-19 pandemic, some shoppers are taking drastic measures. While some are trying to tighten their budgets, others are embracing Buy Now Pay Later (BNPL) programs to help more easily make purchases.
According to a recent survey by Monash University in Australia, they found 34 percent of people are worried about the long-term effect the pandemic will have on their financial situation. This is causing many to slash their spending and watch their budget more closely than they had before the pandemic.
Some millennials, in particular, are fretting that the pandemic may erase any gains they had made in financial security prior to 2020. A survey conducted by financial services company Bankrate found that 54 percent of millennials are worried that they won’t be financially better off in 2021 than before the pandemic.
But the same survey found that the same group is embracing BNPL differently than previous generations. While millennials typically have favorable opinions of BNPL, they are now leaning toward it to help manage their cash flows more easily.
The survey revealed that nearly one third of millennials have used BNPL programs since the COVID-19 outbreak began. While only 18 percent of all customers polled had used BNPL prior to the pandemic.
The fact that BNPL programs are providing an extra bit of financial freedom to millennials who may feel like their financial situation is being tested, speaks volumes about how the programs are helping shoppers manage their finances during this uncertain time.
Millennials are stuck in a time of economic turmoil. With government-enforced job losses, pay cuts, and health concerns, it’s understandable why millennials are turning to new financial solutions to weather the storm.
For those who are not interested in using BNPL programs, budgeting and saving are still essential. By doing so, people can free up some extra money to help with financial burdens during this tough time.
Ultimately, BNPL programs are offering a great deal of convenience and flexibility to consumers during the COVID-19 crisis, while budgeting and saving are allowing people to stay afloat financially. No matter what financial path people choose to take during the pandemic, it’s important that they evaluate all their options and decide what will be best for their situation.
