The Household Financial Management during the Covid Pandemic – a Comparative Analysis

Abstract

Purpose: to understand and personal financial management before and during the Covid Pandemic and its impact. Further, to make certain suggestions to better personal and household financial management. Methodology: This study was survey based, 192 respondents were picked from Government, private, business, self-employees and others. Paired t-test was applied to know whether the mean difference between financial behavior of individuals before and during the pandemic along with required descriptive statistics. Findings: Study found that there is a significant difference in financial behavior of individuals before and during the pandemic. It is found that around 30% of income has come down during the pandemic, according their spending been also affected. They opined that their priorities have changed due to this pandemic and they need advises from experts to get out this. Further, study has offered some suggestions to better their financial management to face such kind crises.

Exploratory study: Financial behaviour of qualified financial professionals during South Africa’s lockdown

“…A study performed by Gade, Goli and Ratnaker (2021) in India investigated the financial behaviour of households before and during the COVID-19 pandemic. The respondents were required to state what percentage of income they used to spend before the COVID-19 pandemic and during the pandemic on several aspects such as health, education, basic needs, insurance, credit card payments and savings.…”

“…Of this 72%, 33% of respondents are aged 40 and younger. This might be because the respondents had a experience similar to the respondents from the study of Gade et al (2021) during the COVID-19 pandemic, where it was identified that the savings of respondents were not sufficient to protect them during the COVID-19 pandemic.…”

“…Overall, based on the survey results, the extraordinary nature and occurrence of a pandemic did not result in a significant change in the financial behaviour of the qualified financial professionals in this study, which might be because history indicating the not-so-occasional occurrence of these unforeseen events. It is therefore submitted that qualified financial professionals deemed their savings to be sufficient to safeguard against unforeseen circumstances such as the COVID-19 pandemic, which is in contrast with the findings of Gade et al (2021).…”