Question of the Day: What percent of Gen Z consumers are stockpiling cash in light of coronavirus?

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Mar 29, 2020
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Question of the Day, Behavioral Finance, Current Events

Hat tip to Beth Tallman for this question idea! Thank you for all of the informative articles in your weekend reading list too! 

Answer: 39%

Motivated by three factors:

  • The possibility of banks shutting down
  • The convenience of having cash during emergencies
  • The desire to ensure access to funds

Questions:

  • How are accountholders protected if banks fail? 
  • Are there any other reasons you can think of that might explain this behavior?
  • What are the risks of holding lots of cash at home? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (MagnifyMoney):

Consumers are rushing to ATMs in response to the coronavirus (COVID-19) pandemic, according to a survey of more than 1,500 Americans by MagnifyMoney, a LendingTree subsidiary. The report found 28% of Americans stockpiled cash as economic uncertainty mounts, withdrawing an average of $2,224.10.

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Teach your students how to manage bank accounts in this digital age with the NGPF Banking Simulation

 

 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.