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Financial and Psychological Reverberations During COVID-19: Evidence for Individual and Generational Turning Points? Cover

Financial and Psychological Reverberations During COVID-19: Evidence for Individual and Generational Turning Points?

Financial Planning Research Journal
Volume 7 (2021): Issue 1 (December 2021)
By: Kym Irving  
Open Access
|Mar 2024

Figures & Tables

Figure 1:

Factors underlying investor behavioura during COVD-19 aAdapted from Hershey (2004, cited in Hershey et al., 2007)
Factors underlying investor behavioura during COVD-19 aAdapted from Hershey (2004, cited in Hershey et al., 2007)

Figure 2:

Mental Distressa and Financial Stressb during COVID-19 in 2020 Source. Taking the Pulse of the Nation (TTPN) survey (Melbourne Institute), Waves 1-23. Sample size is 20,906 working-age adults. Reproduced with permission from Botha, Butterworth and Wilkins (2020) aMental distress.’ During the past week about how often did you feel depressed or anxious?’ Response options: “all of the time’, ‘most of the time’, ‘some of the time’, ‘a little of the time’, and ‘none of the time’. Mental distress includes responses ‘all of the time’ and ‘most of the time’ bFinancial stress. ‘How would you describe your current financial conditions, in terms of paying for essential goods and services such as bills, rents, mortgages?’ Response options: ‘very financially stressed’, ‘moderately financially stressed’, ‘making ends meet’, ‘moderately comfortable financially’, very comfortable financially’. Financial stress includes responses very financially stressed’ and ‘moderately financially stressed’.
Mental Distressa and Financial Stressb during COVID-19 in 2020 Source. Taking the Pulse of the Nation (TTPN) survey (Melbourne Institute), Waves 1-23. Sample size is 20,906 working-age adults. Reproduced with permission from Botha, Butterworth and Wilkins (2020) aMental distress.’ During the past week about how often did you feel depressed or anxious?’ Response options: “all of the time’, ‘most of the time’, ‘some of the time’, ‘a little of the time’, and ‘none of the time’. Mental distress includes responses ‘all of the time’ and ‘most of the time’ bFinancial stress. ‘How would you describe your current financial conditions, in terms of paying for essential goods and services such as bills, rents, mortgages?’ Response options: ‘very financially stressed’, ‘moderately financially stressed’, ‘making ends meet’, ‘moderately comfortable financially’, very comfortable financially’. Financial stress includes responses very financially stressed’ and ‘moderately financially stressed’.

Australian consumer segment profilesa during COVID-19

SegmentPercentageCharacteristicsDemographic composition
Income in jeopardy24%Major impact due to job or income loss.Have had a significant change in household income as a result of COVID-19 (61%), with a fear of it worsening (37%).Low to middle to high income.40% Gen X33% Millennials17% Baby Boomers10% Gen Z
Making ends meet20%Struggling financially pre-COVID-19 and continue to struggle. Government assistance or low wage jobs.Low income.56% Baby Boomers32% Gen X11% Millennialsl% Gen Z
Optimistic but cautious30%Worry about health and the economy but are more secure financially.Low to middle income.60% Baby Boomers22% Gen X17% Millennialsl% Gen Z
Stable and consistent26%Experienced a small amount of financial impact but remained relatively stable in mindset and behaviour.Highest income segment.39% Gen X31% Baby Boomers30% Millennials
DOI: https://doi.org/10.2478/fprj-2021-0001 | Journal eISSN: 2206-1355 | Journal ISSN: 2206-1347
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Language: English
Page range: 43 - 64
Published on: Mar 15, 2024
Published by: Financial Advice Association of Australia
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year
Keywords:
COVID-19,
psychological reactions,
financial stress,
financial risk,
financial planning
Related subjects:
Business and economics,
Political economics,
Economic theory, systems and structures,
Business management,
Business management, other,
Industries,
Banks, financial service provider, insurers

© 2024 Kym Irving, published by Financial Advice Association of Australia
This work is licensed under the Creative Commons Attribution 4.0 License.

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