PROVIDENCE – There’s nothing like a global catastrophe to make people rethink their spending habits.
Indeed, a new study by Fidelity Investments Inc. shows that nearly two-thirds of actively investing adults have changed their investing habits and strategies since the start of COVID-19 two years ago. Among the new priorities is a focus on long-term gains, favored by more than three-quarters of investors, and low-risk, low-reward investments over riskier and higher-reward trades, the study found.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
Consumers are also becoming increasingly aware of their spending habits, especially amid inflation concerns, the study found.
Other key changes in spending, saving and investing identified in the study included:
- Spending habits have shifted in favor of long-term and emergency situations, with emergency fund saving trumping vacation spending and contributing to a retirement fund outweighing saving for a wedding or a big event.
- Twenty percent of investors have ramped up the amount they are putting into investments, while 9% started investing for the first time since the start of the pandemic.
- More than half of investors, 57%, said a full company match on their retirement plan was more important than extra paid time off or the option for fully remote work.
- Despite an increased focus on saving and investing, more than half of Americans are not saving as much as they want to be, in part because they feel undereducated when it comes to financial best practices and goals.
The study reflects results of an online survey of more than 2,500 adults.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
