Covid-19 impact on Financial Health

Posted on April 08, 2020

The coronavirus outbreak has brought about economic slowdown and increased financial uncertainty. Not knowing how this pandemic will play out affects the physical, mental and financial well-being of many people across the world. In the coming days, weeks and perhaps months, the Think Forward Initiative Team will be sharing easy tips and tricks and pointing out money management tools aimed at helping people in their personal financial situation.

Money is the thread that flows through everything – it directly affects our health, our relationships and our biggest life decisions. With Covid-19 rapidly changing the economy and the way we live, work and consume goods and services, it is no wonder there is a heightened level of financial anxiety, concern and sometimes also fear in society.

As some businesses close or reduce staffing, we are seeing more people across the globe without work and struggling to make ends meet. Although several governments, NGOs, businesses and society at large have demonstrated their willingness to cushion the biggest blows, some of the people who were already financially vulnerable, have become even more so.

As the people and organisations behind the Think Forward Initiative we are now even more committed to our purpose and to do what we can within our means. We have to be modest about what we can do. However, we are committed to do our share and to serve people. This will be through the research insights we produce and curate, the consumer solutions we support and with the communication through our own and third party channels.

In the coming days, weeks and maybe months our emphasis will be on sharing those easy tips and tricks and those money management tools which we think could be of most help for people to better manage their financial present and future in the light of the Covid-19 situation. This situation will likely have an impact on society for at least the coming months and maybe the coming year or even years.

Our financial health tips will revolve around five aspects: how people earn, spend, save, borrow and plan financially. The coronavirus pandemic will entail varying levels of disruptions to these five financial dimensions in the lives of many people. The direction and extent of the impact on people’s financial health depend on their net wealth and financial health levels before the crisis as well as on the social safety net people can potentially tap into.

As said, our contribution to helping people manage their personal financial situations is likely to be modest. Moreover, explaining and understanding how to deal with the financial consequences of Covid-19 does not automatically imply people will be able to act directly. Nevertheless, we hope our communications around tools and tips will contribute positively and meaningfully to people coping financially in the best possible way.

The Think Forward Initiative Team, 8 April 2020