Fact or Fiction?
4 household finance trends influenced by the COVID-19 pandemic
We know that the COVID-19 pandemic has had major effects on consumers’ finances across the country, but how is it actually impacting households?
Using data from the 2021 edition of the Equifax Wealth Trends report, we break down four common assumptions about the pandemic’s effect on household finances and explore whether they’re fact or fiction.
Fact or Fiction?
These households account for only 7% of total household
Affluent households held nearly 69% of the total wealth in June 2020.
The rich are getting richer –
and there are fewer of them.
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Affluent
($1M+)
Mass Affluent
($100K-$1M)
Mass Market
(<$100K)
Percent of U.S.
households
129 million total
Percent of U.S.
investable assets
$48 trillion total
Affluent households have increased their wealth since the pandemic started. Everyone else hasn’t.
Post-COVID, economists expect a
k-shaped economic recovery,
meaning recovery will be unequal
in different parts of the economy.
We see a similar pattern emerging in how different wealth tiers have been affected
and will likely fare through the recovery.
Total value change*
*in aggregate, June 2019 to June 2020
Affluent
Increased over $4 trillion
Mass Affluent
Decreased $304 billion
Mass Market
Decreased nearly $63 billion
*June 2019 to June 2020
Affluent
Increased over $2 trillion
Mass Affluent
Decreased nearly $608 billion
Mass Market
Decreased nearly $125 billion
Measuring spending power
requires you to factor in the full
financial picture — including
income, wealth, and credit.
How do you estimate the capacity to spend, invest, or withstand economic shocks?
Equifax calls this measure Financial Durability™, which can help you identify pockets of the population that hold more of the spending power.
Fact or Fiction?
High durability households spending power
vs.
All households across each generation
Gen Z (18-22)
Younger Millennials (23-27)
Older Millennials (28-37)
Gen X (38-54)
Pre-Retired Baby Boomers (55-65)
Retired (>65)
High durability households
All households
Fact
The concentration of spending power with high durability households has increased since 2019, especially for Gen Z and Younger Millennials.
Average household income (including income from assets) has increased across all generations.
Fact or Fiction?
Income report
June 2019 - June 2020
YoY growth per household:
$40,882
Average per household:
14%
$45,248
14%
Average per household
YoY growth per household
$63,010
6%
Average per household
YoY growth per household
$99,115
3%
Average per household
YoY growth per household
$113,794
3%
Average per household
YoY growth per household
$99,516
5%
Average per household
YoY growth per household
Income has increased by a greater percentage for younger generations but is also higher overall for older generations.
Pre-retirement Baby Boomers are in their prime earning years.
$94,257
4%
Average per household
YoY growth per household
Overall Average
In aggregate, deposit numbers
are up across all wealth tiers.
Mass Market deposits
increased nearly $62 billion
Deposits have increased and
represent a greater percentage
share of assets for all generations.
Fact or Fiction?
Mass Affluent deposits
increased nearly $304 billion
Affluent deposits
increased over $2 trillion
Growth in deposits at a household level, by generation
Gen Z
(18-22)
YoY growth in deposits
per household:
28%
114%
difference
Gen Z (18-22)
Younger Millennials (23-27)
Older Millennials (28-37)
Gen X (38-54)
Pre-Retired Baby Boomers (55-65)
Retired (>65)
25%
24%
26%
22%
17%
Younger Millennials
(23-27)
Older Millennials
(28-37)
Gen X
(38-53)
Pre-Retired Baby Boomers
(54-65)
Retired
(65+)
YoY growth in deposits
per household:
YoY growth in deposits
per household:
YoY growth in deposits
per household:
YoY growth in deposits
per household:
YoY growth in deposits
per household:
112%
difference
95%
difference
87%
difference
68%
difference
48%
difference
Fiction
All households in each generation have the same spending power.
Click to find out
Fact
Income has grown since
the pandemic.
Tap to find out
Fact
People are saving more cash since the COVID-19 pandemic began.
Click to find out
High durability households represent a
spending power that’s 86% greater than
the general population.
These households account for a greater
proportion of spending in younger generations.
22%
Average of all generations
YoY growth in deposits
per household:
June 2019 - June 2020
Click to shuffle through generations
Keep scrolling to learn more
Assets
Total value change*
Investments
Keep scrolling to learn more
Keep scrolling to learn more
Keep scrolling to learn more
Want to learn how the impacts of COVID-19 are
bringing about the “next new” in overall wealth trends?
Download the 2021 Wealth Trends Report
High durability households
spending power
All households across each generation
VS.
Gen Z
(18-22)
Younger Millennials
(23-27)
Average per household: $45,248
YoY growth per household: 14%
Older Millennials
(28-37)
Gen X
(38-54)
Pre-Retired Baby Boomers
(55-65)
Retired
(>65)
Average per household: $63,010
YoY growth per household: 6%
Average per household: $99,115
YoY growth per household: 3%
Average per household: $113,794
YoY growth per household: 3%
Average per household: $99,516
YoY growth per household: 5%
Gen Z (18-22)
YoY growth in deposits
per household: 22%
Younger Millennials (23-27)
YoY growth in deposits
per household: 28%
Older Millennials (28-37)
YoY growth in deposits
per household: 25%
Gen X (38-54)
YoY growth in deposits
per household: 25%
Pre-Retired Baby Boomers (55-65)
YoY growth in deposits
per household: 25%
Retired (65+)
YoY growth in deposits
per household: 25%
All data sourced from Equifax 2019, 2020.
Copyright © 2021, Equifax Inc., Atlanta, Georgia. All rights reserved. Equifax, EFX is a registered trademarks and IXI and Financial Durability are trademarks of Equifax Inc.
The information in this presentation is not to be relied upon, is not intended to be, nor should it be used or construed as legal advice. Equifax assumes no liability for any errors or omissions in the information in this presentation. Compliance with laws and their implementing regulations is the responsibility of each entity to which such laws apply.
info.ddm@equifax.com • equifax.com/DDM
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