Adults in the U.S. generally fared better in 2021 than in the decade before the pandemic, the FINRA Investor Education Foundation reported this week.
"Our study adds to a growing body of evidence that many U.S. adults were able to fortify their personal finances during the COVID-19 pandemic, despite the many economic disruptions it has triggered," said Gerri Walsh, the foundation's president, in a statement.
"At the same time, the research shows that some segments of the population that have historically struggled financially continued to do so," Walsh explained.
FINRA conducted a state-by-state online survey between June and October 2021 of 27,118 U.S. adults, some 500 per state plus the District of Columbia.
Impact of Stimulus
Fifty-three percent of respondents reported having three months' worth of emergency savings in 2021, up from 49% in 2018 and just 35% in 2009. Further, 54% said they did not find it difficult to cover expenses and pay bills, compared with 50% in 2018 and 36% in 2009.
But 20% of respondents said they were laid off or furloughed in 2020 or 2021 because of the pandemic, and 26% experienced a large, unexpected drop in income.
FINRA suggested that pandemic-related enhanced unemployment benefits and stimulus payments may account for a portion of the financial resilience documented in the study.
Fifty-nine percent of participants said they used the stimulus funds to make purchases or pay bills. Many Americans added the money to savings or used it to pay down debt.
