How the Novel Coronavirus Impacted my Family’s Spending
A Story of Long Neglected Home Projects Finally Being Completed
Curious about the magnitude of change in personal spending since the onset of the Novel Coronavirus outbreak. I decided to take a look at how my spending shifted in response to the restrictions imposed to contain its spread.
Three patterns emerged.
- Lifestyle changes
- Substitutions
- Replacements
Lifestyle changes reflect categories that were down or up from increased time spent at home quarantining.
Less
- Gas
- Uber/Taxis
- Tolls Parking
More
- Utilities
- Home maintenance
Not surprisingly everything related to transportation is down. While utilities and home maintenance are up.
Utilities spiked in March and continued upwards in April. Reflecting people being home from school and work all day.
Then decreased in May, reflecting seasonality. There was minimal need for heating or cooling due to the weather.
Long-neglected home projects were finally tackled. As the excuse of activities outside the home to attend evaporated.
Substitutions
Substitutions reflect categories were spending in one category increased. Because it could take place at home where-as the decreased activity could not.
- Groceries up, meals outside the home down
- TV and Internet up, Entertainment Outside the home down
- Activities Up, Childcare and Education Expenses Down
February was typical with more spending on food outside the home than in it. The difference is downplayed. We are outside the home less in February versus the average month due to the weather.
In March the shift begins. Half the month was spent on lockdown and we hadn’t become comfortable ordering out yet.
Once it became clear ordering food wasn’t particularly dangerous. Our desire to support local restaurants led to a rebound in meal purchases in late April.
But, it’s clear the average ticket size for pick/up, delivered meals just isn’t the same. Plus we are still eating in more even as restrictions ease.
TV and Internet were up as entertainment options outside the home dwindled. Yes, I am part of a family that lit $20 on fire to watch Trolls 2 the day it became available to rent.
Activities are up. As purchases to keep children occupied and educated during the lockdown increased.
Spending accelerated in May. As businesses became creative with solutions to get people through the door while still adhering to social distancing requirements.
Childcare and Education expenses were not only down. They actually turned negative in May reflecting refunds for summer programs that have been canceled.
Replacement
Replacements reflects categories that were minimally impacted. Because spending could easily shift on-line or in store purchases remained essential.
- Clothing
- Big Box Stores
- Gifts/Holiday Spending
Spending increased at big box stores. We relied on their robust delivery networks and ability to purchase multiple item types during in-store visits. To make fewer shopping trips to fewer stores outside the home.
Clothing, no discernable change. Forced shift to replacing retail purchases on-line. The kiddies keep on growing no matter what.
Gifts, holiday spending remained similar with delivery via Amazon substituting for party attendance. Spike in May reflects an anniversary, Mother’s Day, birthday combo.
The biggest change was jewelry substituting for flowers on Mother’s Day. A change my wife embraced and I fear will be permanent. With a homemade cake for me on my Birthday, thanks, sweetie!
Savings
Much to my surprise chagrin. Our savings were lower in April and May than pre-quarantine.
Some of that reflects conservative spending in March as uncertainity around the Coronavirus led to a spike in savings. Merely delaying purchases that were made later.
It mainly appears to reflect the fixed nature of our expenses. We saved some money as our activity slowed down. But these categories weren’t the primary drivers of our spending and so only minimally impacted our overall savings rate.
He's published three books. Most recently The World After Covid 19: Coexisting with the Novel Coronavirus.
His musings can be found at stevenlmiller.me. Subscribe to The Pompatus Times for updates.
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