How Historical Events Affect Our Financial Decisions

The reality has really hit how historical or global events can really affect us all in so many ways. When it comes to our finances, we start to change our habits to appropriately fit the times, and it lasts. Join us as we take a look at some of the historical events through the decades and how they affect our financial habits.

Great Depression

The Great Depression might be the one historical event that people think of the most when they think of financial hardship. When the economy is in a depression it means in simplest forms that there is high unemployment and a downturn in overall economic activity. 

The Great Depression occurred from 1929 to 1939, it might not have had an impact directly onto your financial habits. However the trickle down effect of family members who did experience the worst economic downturn in history would be the main source. 

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Financial Crisis of 2007-2009

This event feels close to home and close to the calendar, but marks more than ten years since this financial crisis. 

Kids growing up during this time would be around the age where they are in or graduating college or high school. It’s possible that they saw the hardships their parents were going through, and adopted some of the saving mentality. 

One of the most prominent characteristic to linger from this generation was the accumulation of debt, as many were not able to afford the same payment plans, as well as a lack of savings due to the need to pull from that fund. 

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COVID-19 

We have ALL felt the impact that COVID-19 has had on not only our finances, but virtually every aspect of our old routines. One of the main takeaways that we have seen from this is that the unknown causes a lot of internal fear and anxiety on where you stand financially. 

Fears of losing jobs, being furloughed, or not being able to find new employment after accomplishments like recently graduating college loom over the heads of the workforce during this time we are in. 

Because of this, we are all feeling the need to save more, while statistically making less than before. Data from Pew Research shows that those in the workforce before the pandemic that just under half are making less than they did pre-pandemic. 

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With AO Wealth, we want to make sure you have someone who can help you help yourself to stay accountable and consistent. Our online portal allows you to see your goal in progress and where your finances are in your personal stage. Money and spending can sometimes feel like it's hard to visualize and manage, so this is a great tool to let you remember your goals, where you started, and where you are headed. 

Advisory services offered through A.O. Wealth Advisory, LLC, a registered investment adviser.

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