genesis domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /services/webpages/f/i/financialpsychologycenter.com/public/wp-includes/functions.php on line 6114(Money Management) – The coronavirus pandemic has upended everyone\u2019s life and led to some significant habit changes. The old (and ironically somewhat tired) personal finance advice of skipping a morning latte may be forced upon you if you no longer have a morning commute.<\/p>\n
Such an impactful event also brings up questions of how people are coping and which new habits will stick when we no longer have to worry about the coronavirus. We talked to some experts to find out how COVID has changed us and what changes may be still to come.<\/p>\n
Looking back at how people initially responded to the coronavirus outbreak offers some insight into how a crisis can impact us.<\/p>\n
\u201cFirst and foremost, COVID is affecting our mental health by creating an initial stress response: fight, flight, and freeze,\u201d says Dr. Alex Melkumian, founder of the\u00a0Financial Psychology Center<\/a>\u00a0in Los Angeles.<\/p>\n Perhaps you\u2019ve seen or experienced some of these responses. People \u201cfighting\u201d by updating their LinkedIn profile and jumping into a job hunt. Flight and freeze might look like avoiding the situation and putting off everything until the last minute. Although, a similar lack of response can come from optimism bias\u2014the belief that everything will work out okay.<\/p>\n Of course, there\u2019s more at play than an initial response, and people react differently depending on the situation. For example, after a layoff some people may avoid\u00a0filing for unemployment<\/a>\u00a0due to shame or pride rather than a flight or freeze response.<\/p>\n Crisis responses have also played out in different ways on a large scale. If you think back to the early days of the pandemic (a lifetime ago), you\u2019ll remember how panic-buying led to toilet paper shortages.<\/p>\n Over half-a-year in, people have had time to adjust, develop new routines, and implement changes. Some of these might not be habits, per se, but they can still have a long-term impact.<\/p>\n \u201cA lot of what holds people back is that they think there\u2019s all the time in the world to get it done,\u201d says\u00a0financial therapist<\/a>\u00a0Lindsay Bryan-Podvin. \u201cWhen the reality hits… the fire burns to get things going.\u201d Many of her clients are finally crossing things off their financial to-do list, such as getting life insurance or writing up a will.<\/p>\n A\u00a0McKinsey & Co. survey<\/a>\u00a0from October 7, 2020, offers more insight into what types of financial habits may be changing:<\/p>\n Katherine Milkman, a professor at the University of Pennsylvania\u2019s Wharton School, also recently shared some insights on what habits can be \u201csticky\u201d in an interview on the\u00a0Slate Gist podcast<\/a>\u00a0and article by Joe Pinsker in\u00a0The Atlantic<\/a><\/em>.<\/p>\n For example, it\u2019s not hard to imagine someone developing a preference for a lower-cost brand or more convenient services. But washing your hands for 20 seconds might not stick when there\u2019s no fear of a virus.<\/p>\n Specific habits aside, there could be a lasting impact on people\u2019s relationship with their work and finances.<\/p>\nSOME FINANCIAL HABITS ARE ALREADY CHANGING<\/h2>\n
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TRAUMAS MAY STAY WITH US<\/h2>\n