The effects of the COVID-19 pandemic are still manifesting themselves on society. Economic uncertainty, political unrest, and environmental changes have made it difficult to predict what will happen next. Given the current situation of the United States, it is predicted that Americans have yet to see the true economic impact from recent events. Moving into 2022, there are economic concerns every family should consider including the following.
Debt
One of the consequences of a financial crisis is the increasing number of families falling into debt. Reliance on credit works when you are on top of your purchases and payments, however it can quickly become an overwhelming trap when expenditures outweigh income. Many households experienced benefit cuts, zero-hour contracts, and increased self-employment over the pandemic. According to Intrepid Eagle Finance, this has contributed to a less secure working environment and household income being reduced. If you have experienced any income changes with your family, it is wise to save and pay off what you can to avoid financial ruin.
Inflation
Another economic element that has been affected by the pandemic is inflation. Technically, inflation has been creeping up for a while, but the pandemic exacerbated the problem. With supply chain issues and labor shortages, general prices have seen a significant rise. Without an increase in income, families are left paying more for necessities. For example, groceries and gas have seen a significant increase in cost. According to Xevant, drug prices have increased 33% since 2014. Monitoring your budget and investing can help your dollar cover necessary costs.
Continued Threat of the Pandemic
The continued threats of the COVID-19 pandemic have made it difficult for families across the world. According to Pew Research Center, half of non-retired adults say the economic consequences of the coronavirus outbreak have made it harder for them to achieve their financial goals. Most households have faced job and wage loss during the pandemic. New variants and risks of disease have prolonged these existing issues. Families looking to plan financially for the new year should factor in the continued effect of the pandemic and what that might mean for their economic situation.
Economic growth and its impact is uncertain for the year 2022, and this uncertainty brings a lot of complexity and uncertainty to families. Increasing debt, inflation and the continued threat of the pandemic require families to remain agile to strategically plan for the future. Doing so will protect your family from negative economic changes that could happen in 2022 and onward.
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