As Californians lose their jobs due to the issued “Stay at Home” order, put into place on March 19, students can use financial management strategies to stretch their budget.
Students can avoid the worst financial pitfalls during the pandemic by making financially- savvy decisions.
The “Stay at Home” order forced citizens out of large gatherings and to socially-distance from one another. The order also caused a number of nonessential businesses to close.
Due to these closures, the U.S. job market struggles and unemployment rates rise.
The unemployment rate for the state of California increased from 3.9 in February to 5.3 in March., the Employment Development Department of California reported.
“First-time claims for unemployment benefits have surged more than 3,000% since early March,” Anneken Tappe wrote in an article for CNN Business on April 2.
In other words, individuals who have never filed for unemployment before are having to do so now.
Students working full-time and part-time positions at businesses now face financial distress with restaurants and retail stores among the first to cease operation.
Three simple ways to be financially savvy during the pandemic helps to combat financial obstacles.
- The first way to withstand money trouble is to limit the amount of money spent on nonessential goods. Although people may shop compulsively during a crisis, money should only be spent when necessary.
“I’ve only been spending my money on products I absolutely need or on things I find essential,”Citrus College student and communication major Madison Doyle said. “This includes food, water, feminine products, cleaning supplies, gas and car
insurance.”
- The second way to save money during the pandemic is to avoid pricey takeout food. While it may be argued supporting restaurants during the pandemic is beneficial to the economy, it may not benefit a student’s budget.
Instead, use food from grocery stores as a main source of food. Companies like Instacart, a service that delivers groceries from local stores, charge minimal delivery fees and are customizable to your needs.
Instacart said the effects of COVID-19 have led the company to provide a “leave at my door delivery” service.
- The last way students can save money is to compare auto insurance policies. Since nonessential workers reside in their homes, less people need to commute. Due to this, insurance companies are providing discounts to their customers.
Farmers Insurance agent Gabriel Gonzales said for the month of April Farmers Insurance is giving a 25% discount to customers with auto insurance.
