An article from the Summerville journal scene debates the need for maintaining good financial habits in a time of COVID-19, following the impacts felt at the USA, where many Americans rightfully concerned about their health during this time.
Considering the emergence of COVID-19 has resulted in a societal spike of anxiety and fear, but also in a heavy economic consequence on families incomes and financial resources, several important guiding steps are suggested to unsure financial well-being.
Stick to your budget: Now is not the time to make impulse purchases or go crazy with internet shopping just because you’re cooped up at home and adjusting to this “new normal.” In fact, you can easily make the case for reducing your consumer tendencies in favour of covering only your main necessities of food, shelter, utilities and transportation in the weeks ahead.
Saving is still important: Whether you have an emergency fund enough to cover you for several months, saving is still an important financial habit. Whether you’re receiving a tax refund or a stimulus rebate, try and put a percentage into your savings if you can cover your other monthly expenses and have money left over. If you are fortunate to have a healthy savings reserve, then consider putting some excess funds into a college savings account for example.
Adjust when the time is right: When things stabilize, be ready to go back to paying off debt, investing in your future retirement or supporting the needs of your loved ones.
Consider sharing the lessons you’ve learned: While remote learning has been an adjustment for most families, this time presents a great opportunity to discuss personal finance with your children who are studying from home. Talking them through the basics of creating and sticking to a budget, the importance of saving and the pros and cons of taking on debt are valuable life lessons that will help them to become financially responsible young adults.
You can read the full article here.