The Covid crisis has forced many Americans to adopt new attitudes and behaviors toward money and financial planning, according to Northwestern Mutual 2021 Planning & Progress Study.

The study, which was conducted by the Harris Poll in March on behalf of Northwestern Mutual and included 2,320 American adults, found that 32% of Americans said their financial discipline has improved during the pandemic, and 95% expect to maintain their new habits.

Further, the study found that 17% of respondents said they did not have a financial plan before Covid hit, but now they have one in place. It said 83% were prompted to either create, revisit, or adjust their financial plan during the pandemic.

Americans, the study found, are vowing to cut back on living expenses (45%), paying down debt (34%) and increasing investing (33%). They also indicate that they will regularly pay attention to their financial plan (29%), increase their use of technology and digital solutions to manage their finances (28%) and increase their retirement contributions and savings (25%).  

But respondents said the Covid crisis has put a dent in their timeline for achieving financial security, Nearly half (45%) of Americans feel this way, with 18% indicating that it has set them back one to two years. Fifteen percent said it delayed their savings timeline for less than a year, 9% said they have been set back three to five years, and 3% said the Covid crisis has pushed back their timeline for achieving financial security more than five years.

Millennials and Gen Z have felt the impact on saving more than other generations during the Covid crisis, the study found. Sixty-five percent of millennial and 63% of Gen Z said their timeline for achieving financial security has been set back one to two years.

Additionally, 35% of respondents said they have had to delay a major financial or life event because of the Covid crisis. Of that group, 17% said they put off large purchases or funding large projects such as home renovation; 10% said they held off looking for a new job; 9% postponed buying a home; 6% delayed buying a business and 5% put off attending college.

The survey also showed that 4% postponed getting married, 4% delayed retiring or leaving the workforce, 3% put off having children and 2% postponed getting a divorce.

Christian Mitchell, executive vice president & chief customer officer at Northwestern Mutual, said it is positive that people are changing their behaviors and financial choices after the setback from the Covid crisis. “While we don’t know what post-Covid life will look like, we’re encouraged to see that people intend to hold on to the better financial habits they’ve developed during this challenging time,” Mitchell said.