Impact of Coronavirus on Personal Spending – June Update
Travel Expenses Return with a Vengeance
Curious how the reopening impacted my family’s spending. I updated my analysis to include numbers for June.
- Lifestyle changes reflect categories that were down or up from increased time spent at home quarantining.
- Substitutions reflect categories were spending in one category increased. Because it could take place at home where-as the decreased activity could not.
- Replacements reflect categories that were minimally impacted. Because spending could easily shift on-line or in-store purchases remained essential.
Lifestyle changes
Less
- Gas
- Uber/Taxis
- Tolls Parking
More
- Utilities
- Travel
Spending for transportation emain subdued in June. Travel jumped to the largest share of our income for the month.
While remaining similar overall to what we spent last year on vacation. The mix of our travel expenses changed in a way many other people may also experience.
Spending more on accommodations closer to home for vacations. Due to the need for more space per person and a reluctance to travel via air.
Utilities spiked in June more than doubling from May. Reflecting the need to run air conditioning throughout the day with people at home for work and unable to attend normal summer activities.
Substitutions
- The gap narrows between groceries and meals
- TV and Internet remain elevated versus pre-coronavirus trend
The gap continued to narrow between groceries and meals outside the home in June. With meals tripling from the April low at the height of the initial outbreak.
Demonstrating our growing comfort with ordering food from restaurants and increased opportunities for outdoors spending at places like ice cream shops.
TV and Internet spending remain elevated versus the pre-virus trend. Owing to a continued reluctance to engage in activities outside the house.
The exception being a family miniature golf outing we felt comfortable doing because it was outside. We went first thing when the course opened before it would be busy.
Replacement
- Clothing
- Big Box Stores
- Gifts/Holiday Spending
Spending increases on clothing and at big box stores reflect ancillary vacation spending. Since we rented a home and prepared our meals and largely entertained ourselves there during our trip.
Why we needed new clothes to sit in a house escaped me? Thankfully, my wife and children reassured me these expenditures were vital to a positive vacation experience.
Gifts and holiday spending decreased because clearly Father’s Day is less important than Mother’s Day, my theory. Or, because there was one less birthday to celebrate during the month, logic.
Savings
Our savings rate dramatically decreased by 2/3rds for the month. The decrease correlated one to one with the direct travel expenses for our vacation. Along with the spending increases in other areas to prepare for the trip.
Click here to access resources on safely coexisting with the novel coronavirus.
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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