How are so many people still spending as normal?

[nc1962]

I'm so confused by what I'm hearing compared to how people seem to be living their lives.

On the one hand, it's everywhere about job losses, redundancies, people not being able to pay mortgages. But on the other - a lot of people I know/vague acquaintances are going on holiday at every opportunity, buying a lot of stuff and spending a lot of money on house renovations.

Our household has been hit badly by all of this, with a massive drop in income.

Of course it's different for everyone and up to people how they spend, but I'm so uncertain what to think. Are there really so many households (normal as opposed to very rich) who have been able to carry on as normal? I thought we were very typical in terms of having taken a big hit, but now I don't know what to think and whether this is a short term or long term thing.

I wanted to ask what others are finding to be the case - are a lot of people you know carrying on as normal, or has there been a big financial impact?

I'm an online retailer and my business has doubled. Everyone is shopping online now. We've been eating out more to try and support local restaurants and shopping with small businesses. I sing in a choir and I'm normally out at least twice a week if not more so I'm saving on petrol with that and we haven't had any days out that we would normally.
I have taken on two employees and a cleaner, so my increase in trade has had a knock on effect for others.
We hear about all the unemployment and redundancies on the news, but we never hear the positive stories of opportunities being created by small companies like mine. Having spoken to a lot of small business owners who trade online, we're all headed in the same direction. Yes, growth takes time, but it's headed the right way.

@PattyPan

I wonder how strongly people prioritised job security before the pandemic and whether we will see a lot of people retraining and young people's career preferences changing. Although there is obviously a degree of luck to my fortunate circumstances, one of the main reasons I chose my job over another offer I had was because of the better job security although I was imagining a recession rather than pandemic.

There's always an uptick in PGCE applications during recessions, probably for that reason.

@MRex that’s true - I imagine people will be emphasising/developing generically transferable skills like project management, writing skills, management, giving presentations etc. I think coding/programming and data analytics skills are also going to be in demand in a lot of different sectors in the future too, so that could make for a solid backup.

Dh is a key worker so he’s going to work as usual and no change in income. I’ve been WFH since March.

We saved on childcare for 3 months when they were closed during lock down.
When they reopened, I reduced the hours spent at nursery because work became more flexible (this had never happened before).
Also I work part time but could do more hours now so pretty much full time with no extra child care cost. The holiday we booked for Aug was cancelled and we got a refund. We’re grateful to God for this but then we’re being careful with money and trying to save as much as we can and throw more money at our debts too.

H has continued to go to work as usual as he's in construction. I've saved on my travel fares (public sector).

I'm intrigued by the childcare costs, aside from when everything was closed earlier in the year, are people still WFH with children?

I think people kind of still do though as some work are now flexible. I know some of my friends who don’t have to do all their work within a set hour so they’ve reduced the childcare they need to their core hours and they can make up the rest of their hours when their partners are at home.
Some people used to pay for after school clubs but now could do school pick up during their breaks and let the children amuse themselves for an hour whilst they finish their shift.
Someone at my place of work takes all her breaks and lunch together at the end of her shift so she works from 8:30 to 4:30 normally but instead works from 8:30 to 3:15 and then signs off for the day so can pick her child up from school. Obviously she can take coffee breaks normally during her shift.

@TabbyStar

Thank you for your lovely comment.
Thank you for caring.

DP and I can wfh with his DD in the house. She is 10 and can occupy herself. Even if she were younger we could make it work.

It’s good for people who still have income to keep spending. If everyone panics and starts saving it will hit the economy hard and even more people will lose their jobs.

Financially better as a lot of costs have been cut out eg petrol, clothes, treats. Invested in some shares which came good during Covid. Lucky to be in a job which is secure.

DH is in an essential industry and has worked from home throughout.
I'm a SAHM although if I was still a teacher, that would have been financially secure too.

Some kids' activities are not back on yet, so I'm probably saving half.
No commuting or cob shop for DH.
We eat out a bit less. Probably spending a bit more on takeaways, helped by the DCs aquiring a taste for Indian at last.

I've been spending on updating the kids' needs as they've tipped up clothes sizes.

We haven't bothered with DIY as it's a PITA to buy materials and get to the dump. A major, essential repair has been done to the house using a tradesman.

Meanwhile I have friends facing reduced income, redundancy and hoping the training for a new job comes up while they can still afford a tiny 2up 2down for their young family

Both keyworkers here (NHS and social care) so work has continued as normal and our spending has stayed the same. But then we can't afford holidays most years, drive old cars, shop at Aldi, v rarely buy clothes etc...

Myself and my husbands jobs have not been at all affected by all this - in fact our companies are thriving - we are lucky and I guess a lot of others are too! So our life hasn’t really changed much - same money coming in - less going out as we aren’t going on nights out or holidays or anything
I guess loads of people are the same??

Re childcare our nanny left at the end of last year and I had a temp in whilst waiting to recruit a replacement.

Then the schools closed so we were all at home and since youngest is 9 we were able to manage WFH and online schooling.

Now DCs are back at school and I’m still WFH I pop out to pick the DC up every day, so still no need for support which is saving me £4+k pcm.

Our income hasn’t been affected, DP’s business is in sewerage and they are busier than ever, they’ve needed to take staff on over lockdown. We’ve spent a lot more than we would do usually as we completely re decorated the house. All the traders we’ve had in have said they’ve been much busier than usual. Ive also spent quite a bit online buying things for the DC to occupy them now we can’t go out as much, a climbing frame and then little bits like craft subscription boxes. We’ve also been getting a take out at least once a week and we went on holiday in the U.K. last week. I’ve always worked from home (IT) so our outgoings haven’t changed.

[quote Lovesabadboy]@TabbyStar

Thank you for your lovely comment.
Thank you for caring.[/quote]
Yes, @tabbystar, thank you for noticing, it means a lot.

I've saved money on diesel and childcare so have been buying Xmas presents early. Some of kids activities have stopped. But I've spent some on clothes and on a new gym member ship which is keeping me sane.

We’ve not taken a financial hit, both able to WFH & work is really busy. Which I am extremely grateful for. I do not take it for granted & remain a little on edge. Saved a lot in lockdown on commuting & nursery fees but equally spent quite a bit on stuff to try keep a 3 year old entertained as she was climbing the walls. Bought her a trampoline, garden toys, indoor toys, games, books, a bike.. 🙈

And since lockdown eased, I’ve tried to give my girls the best summer I could. I’ve spent a fair bit on day trips to zoos, parks, seaside, country parks, theme parks etc .. and they have had a ball. Which I’m very grateful for. I’ve also booked loadsa outdoor Christmas activities to try make it magical while we can’t see family. I’ve no idea if they’ll go ahead but I hope so..

No massive change here. Dh was furloughed for three weeks, back straight away. He’s been given a bonus (construction industry).
I was furloughed for about four months, I have just received 1% pay rise (private education). We are very fortunate and count our lucky stars 🙏🏼
In this time we’ve sorted lots on our house and it’s up for sale. We spent time decorating and sorting the house out. Saved money on myself not commuting and learnt to cook more from scratch.

Both on new job retention scheme , 6 months until possible redundancy, chef & designer so both industry affected by lockdowns and Store group instability . Would love to be able to work from home 😭Hoped for information on government retraining schemes but 20 years too old. Feeling hopeless and lost most of my friends are teachers / nhs/ keyworkers so super busy & financially stable.

DH working from home since March, no savings to be made as he was on a gig in London that paid expenses, so train fare up to London paid for, lunch paid for, the only scrawny saving would be the mileage to the train station.

I was furloughed on 80% until August, now back on 100% for now, it is only a part time job and it has never been part of our calculations.

DH retires in about 20 months, hope to God this is over by then.

Because we have always been risk averse, retirement is looking more than OK.

We realise we are very lucky.

I think we are possibly about the same as pre C19, perhaps a little down. Our income has dipped, however our expenditure has dropped. Our 5 girls school fees for last accademic year were reduced, we have hosted zero parties for any of us, wrap around care and nannies are cancelled, although we have our nanny 4 months pay and paid for her flight home so not all savings! The latest is probably entertainment no trips to theatres and concerts, no hotels or holidays beyond Airbnb, less general being out, less spending on clothes possibly. But more purchasing entertainment for inside tbe home, one car has hardly been used in 6 months so we see considering selling that at present.

Most people I know are able to go heir job fully from home so are being paid as usual. They aren't rich but aren't on low-incomes either. There are huge savings from the lack of commute and cheaper lunches at home. They are spending to try and help our economy. Others are retired so have minimal financial impact.

@orcus but who owns those hospitality, catering, travel businesses? 'Middle class' 'educated' MNs like me. There are more SMEs than large corporations out here. We just don't make headline news. It really isn't that cut and dried.

I work in social care and my hours have gone up. DH is management in a national food distribution company and he is busier than he has ever been. No holidays or any more eating out than usual due to being knackered and just pleased to get home most days.