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Research and Statistics

Millennials take financial hits in the pandemic: Survey

Young adults are tapping their emergency savings and using more available credit amid COVID-19, TD Bank reports

Summary

The COVID-19 pandemic is making the personal finances of many Americans a bit more precarious, but millennials are especially feeling the brunt, with hits to their bank balances, emergency savings and credit scores.

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The COVID-19 pandemic is making the personal finances of many Americans a bit more precarious, but millennials are especially feeling the brunt, with hits to their bank balances, emergency savings and credit scores.

Millennials take financial hit in pandemic

According to TD Bank’s recently released TD Money Matters Survey, more than 3 in 10 millennials (31%) report the pandemic has negatively impacted their checking account balance, and 28% say they’ve resorted to tapping their emergency savings since Covid-19 began.

Nearly half of the millennial respondents also reported they are using more than 30% of their credit limit, and about a third (34%) revolve a balance each month.

See related: What is a good credit utilization ratio?

Almost a quarter (22%) of millennials indicated they had applied for a new credit card since the pandemic started, with 17% reporting they had noticed a drop in their credit score during COVID-19. In contrast, only 4% of Generation X respondents and 3% of baby boomers noticed a negative credit score impact.

Some millennials have an eye on the problem, however. Almost a third (31%) said they have spent time reviewing their finances since the start of the pandemic, and almost half (46%) said they would prioritize putting money into savings if they found themselves with an extra $1,000.

TD Bank’s survey was conducted by MARU/Matchbox among a representative group of 1,009 U.S. consumers in mid-June. The results were released Sept. 22.

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