CHERRY HILL, N.J., Feb. 2, 2021 /PRNewswire/ -- Today TD Bank
released the results of its sixth annual Love and Money survey.
According to the survey, 1 in 10 American couples were furloughed,
lost their job, or had their hours decreased as a result of
COVID-19, forcing them to put off certain financial milestones.
Despite a sharp decrease in large purchases due to economic
uncertainty, the findings revealed that more couples are having
conversations about money while they are at home. The survey polled
1,709 U.S. individuals who are married, in a committed relationship
or divorced to better understand how they approach finances in
their relationships.
Of the couples surveyed, 67% said they are finding it difficult
to achieve certain milestones as a result of the pandemic. In fact,
despite the booming real estate market, nearly 1 in 4 couples whose
jobs were impacted by COVID-19 said that they had to delay
purchasing a home until they feel financially ready. The proportion
of millennials who are putting off their house purchase is seven
times that of baby boomers (30% vs. 4%).
Financial hardships and delays are particularly high among
millennial couples, who, according to the survey, also worry about
repaying their current debt 1.5 times more than other generations.
Millennials also claim that a lack of time to research (19%) and
not knowing the appropriate next steps to take as they weather
their newfound financial hardship (17%) are additional barriers to
reaching financial goals, uncovering a gap when it comes financial
understanding and awareness among younger generations.
Despite financial issues presented by the pandemic, the survey
revealed that more than two-thirds (68%) of Americans are very or
extremely happy in their relationships, with 52% saying they have
found it easier to talk about money with their partner. This could
explain why Americans are keeping slightly fewer financial secrets
from their partners than previous years, with only 11% currently
keeping a secret versus 13% in 2019.
"Even with the clear financial setbacks imposed upon Americans
by COVID-19, we're seeing money conversations increasing among
couples and the stigma around discussing finances diminishing,"
said Mike Kinane, Head of Consumer
Deposits, Products and Payments at TD Bank. "This silver lining
creates a unique opportunity to educate couples about managing
their money in the short-term and how they can maintain an open
dialogue about finances, better positioning them to revisit their
longer-term financial goals when life returns to normal."
Trouble in Paradise?
While COVID-19 has prompted American couples to engage in
conversations about money with more ease, 86% say they talk about
money at least monthly and the discussions aren't always positive.
Among those discussing their finances every month, 30% of those
couples admit to having financial arguments.
Prioritizing costs seems to be a particular point of tension, as
44% of couples admit to having disagreements about what expenses
constitute "needs" vs. "wants," with baby boomers more likely to
agree (62%) and millennials (50%) least likely to find middle
ground.
Another sensitive topic among couples is the perception of
financial ownership within relationships. While 62% of men claim
their household's everyday financial decision-making is shared
between them and their partner, 61% of women claim they are the
sole decision-makers, indicating a lack of alignment on who's "in
charge."
Cautiously Optimistic
Most Americans are staying optimistic about the future, with 75%
of those who have had their job impacted in 2020 saying their
financial confidence has not declined. In fact, 39% of respondents
expect to bounce back from financial disruption within a year.
When asked about financial fears as a couple, 19% say they do
not have any fears – another sign that Americans seem to remain
financially confident. Among other fears, 17% identified not being
able to retire (significantly higher among baby boomers at 28%) and
11% were concerned about not being able to provide for their
family.
While many remain confident in their financial situations, it's
likely because they acted quickly to curb spending. More than half
of American couples across generations admit to having quickly
adjusted their budgets and spending habits to offset the impact of
the pandemic, with 58% reducing spend on nonessential items, 43%
cancelling travel plans and 36% delaying larger purchases. Unless
you're a millennial, that is. Twenty-five percent of millennial
couples surveyed admit to engaging in excessive or frivolous
spending behavior over the course of the year, further contributing
to their financial setbacks.
"Aligning on a set of goals—especially around sensitive subjects
like money— can be challenging when people have differing
priorities and perceptions, but the pandemic has made many of these
conversations unavoidable for couples and families who have been
impacted with job loss or reduced earnings," said Kinane. "Couples
can use today's financial challenges as a catalyst to discuss near-
and long-term financial goals. While debt and bills may have been
hard to talk about before, the pandemic has made it easier – and
necessary – to have an open conversation on these topics."
To learn more about the survey data and managing money with a
partner, please visit www.TDLoveandMoney.com.
Survey Methodology
The study was conducted among a representative group of 1,709
consumers across the United States
from December 2-8, 2020. The survey
was hosted by global research company MARU/Matchbox.
About MARU/Matchbox
MARU/Matchbox, formerly the Research & Consulting division
of Vision Critical, is a professional services firm dedicated to
improving its clients' business outcomes. It delivers its services
through teams of sector-specific research consultants that have
technology in their DNA, specializing in the use of Insight
Community and Voice of Market technology. MARU/ Matchbox's research
drives decision-making across all aspects of customer experience,
including innovation, product, branding, commercialization and
communications.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9.5 million
customers with a full range of retail, small business and
commercial banking products and services at more than 1,220
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida.
In addition, TD Bank and its subsidiaries offer customized private
banking and wealth management services through TD Wealth®, and
vehicle financing and dealer commercial services through TD Auto
Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit
www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank
and on Twitter at www.twitter.com/TDBank_US and
www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com/us.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/covid-19-delays-financial-goals-reduces-money-talk-stigma-for-american-couples-according-to-td-banks-sixth-annual-love-and-money-survey-301220099.html
SOURCE TD Bank