COVID-19 FINANCIAL LESSONS

The finances of many people have been greatly affected by the COVID-19 pandemic.  Some of these recent financial situations are:

  • Large numbers of households lacked an emergency fund, and were not prepared for unexpected financial difficulties.
  • People who encountered difficulties making their mortgage and rent payments were offered relief and protection options to avoid losing their place of residence.
  • Monthly payments and interest on student loans were suspended until a later date.
  • Consumers lost nearly $80 million as a result of coronavirus-related fraud. Some common scams were offers to receive stimulus checks sooner, fraudulent unemployment claims, threats of utility shutoffs, online shopping and price gouging for high-demand products such as sanitizer and paper goods.
  • COVID-19 surcharges were added by some businesses and restaurants to cover increased cleaning, sanitation, and food costs. Some dentist offices added an “infectious disease” or a “personal protective equipment” charge.
  • A coin shortage resulted from banks and coin-heavy businesses being closed, lower U.S. Mint production, and increased contactless payments. To adapt, stores gave store credit or a free drink or chips when coins were not available for correct change.

For our current and future times of crisis, these money management suggestions are offered:

  1. Learn about federal, state, and local government assistance programs.
  2. Reassess and review your budgeting priorities.
  3. Reduce and avoid debt; contact creditors to discuss revised payment plans.
  4. Start to rebuild your savings cushion.
  5. Use online tools for managing finances and to automate savings and payments.
  6. Increase your awareness of possible frauds and scams.

For additional information on managing money during COVID and future times of crisis, go to:

Link #1

Link #2

Link #3

Teaching Suggestions

  • Have students talk to others about the financial difficulties and actions taken in recent months.
  • Have students create a video with suggested actions that a person might take when facing financial difficulties.

Discussion Questions 

  1. What are reasons that people might not prepare for unexpected financial difficulties?
  2. Describe actions you might take to prepare for unexpected financial difficulties.

 

Categories: Chapter 1, Chapter 2, Economy | Tags: , | Leave a comment

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