Millennials, Gen Z most concerned about finances amid COVID-19: survey

For millennial Devanshi Vijay, managing finances during the pandemic has been quite the roller-coaster ride.

After her work contract ended in March, the Toronto resident, who held a government position in environmental science, found herself in limbo for a couple of months waiting for her contract to be renewed. 

During that time, she relied on CERB and tried to be vigilant in saving up what she refers to as “cushion money.”

“I realized the importance of saving some money so that if I didn’t get paid for the next few months, I (would) still have that money to be able to survive and not lose my home,” she said.

This meant going back to the basics, just buying what she needed and cutting out any extra frills.

“You have to make do with super little money,” she said. “I live in downtown Toronto, so expenses are generally very, very high and moving during pandemic was not even an option because of the health risks.”

According to a recent survey by Interac, which included responses from just under 1,000 Canadians, 53 per cent of Gen Z adults and millennials are “more concerned about managing their finances than ever before.”

When compared to generations before them, these two cohorts expressed most financial concern amid the pandemic, with 50 per cent of millennials and 47 per cent of Gen Z adults citing concerns about overspending.

As well, the survey reported that 50 per cent of individuals in these two groups have turned to digital payments as a means of tracking their spending.

Vijay said she is one of those people.

“I have not used cash payments (in) the past six months even once,” she said, adding that digital modes of payment make her feel more in control, especially when buying online. “Before actually paying, I rethink again on whether I really need the item (or) service or not. I get more control on my accounts too, as I can review the payments every month. With cash, there is no real accountability on the expenditures.”

“The adoption of digital payments has accelerated over the course of the pandemic for reasons beyond convenience alone,” William Keliehor, chief commercial officer of Interac Corp., said. “We hope Canadians understand ways they can take ownership over everyday activities, like spending.”

Ariana Zeppieri-Makhan, who recently opened her own private psychotherapy practice, said while she has been fortunate enough to continue to work throughout the pandemic, business has been slower as a result, with more people having less money to spend on therapy.

She said keeping track of her finances digitally has been very helpful, especially during this time.

“I have an app that tracks my income and my outgoing finances and it does all my invoicing and stuff for me,” said, adding that she uses it in conjunction with her banking app.

“Those have been fantastic for tracking finances,” she said.