Changes are Coming
This is the first week that we’ve started to see significant changes in behavior:
Net savings increases of $100+ are up 57% vs. March of last year. This is significant because March tends to be a month when members typically spend their tax refunds to play catch-up in other areas. Are SaverLife members better prepared for the economic crisis?
While most spending categories are down 30-50%, grocery spending is way up in March. There was a 50% increase in the number of members who spent over $250 on groceries in March. We might expect to see this for most Americans, but for SaverLife members, it’s a bit surprising.
Spending is down in all the places we usually expect it to go up this time of year. Healthcare expenditures and loan payments in particular are both down. Are people trading health care to make sure their pantries are stocked?
Social distancing is leading to much lower volume in spending transactions. Transaction volume in March 2020 within discretionary categories is down between 30% and 50% vs. March 2019. That means SaverLife members are spending less on almost everything, from arts & entertainment to health clubs and gyms.
One notable decrease in spending is healthcare. Historically, we’ve seen healthcare spending increase in March, as people often defer care until they have an influx of cash. The number of SaverLife members making healthcare-related expenditures in March was down 15% from March 2019. This may be signaling an avoidance of medical expenses as SaverLife members brace for lower incomes, a tampering down of non-essential health services, or a general fear of encountering the healthcare system.
Members also appear to be reducing money put toward loan payments, as payments under $100 increased 9% in March versus the prior two months, while people paying over $100 in loan payment decreased by 6%. Some people (3% of members) stopped making loan payments altogether.
