Ellie Barber is a senior behavioural analyst at Canvas8. She has worked across the UK, US, Europe, and Asia to unpick consumer behaviour for some of the world’s largest brands, finding herself on rooftops with Russian teenagers and eating hot pot with Shanghai’s streetwear community. When she’s not doing that, you can find her singing at weekly choir practises or attempting Ottolenghi recipes.

The lockdown measures imposed due to COVID-19 made a financial downturn virtually inevitable. However, the scale and rapidity of the crisis may have taken some by surprise. At the beginning of May, the unemployment rate in the US hit 14.7% – the highest since the Great Depression – while in the UK, the GDP fell by a record 20.4% in April and more than one in four workers nationwide were enrolled on the government’s furlough scheme by early June, with the total cost of the scheme reaching £19.6 billion. 

On an individual level, the pandemic has significantly impacted household incomes and spending habits. While job insecurity has created a worrying landscape for some, others are embracing the opportunity to reassess their finances and put funds aside. Meanwhile, as restaurant visits, birthday parties, and myriad other entertainment expenses are off the cards, there has been a surge in home cooking and digital socialising. This has been reflected in people’s spending habits – in the three months to April, 21% of British households had purchased a new video streaming subscription, while a jump in orders led meal kit delivery service Gousto to raise an additional £33 million in funding, which it intended to put towards developing tech internally and expanding service capacity. 

 In the US, home workout brand Peloton saw its stock value rise by 66% in the first quarter of 2020, with 23,000 people joining one of its live classes in April. 

The timeline for economic recovery is still being explored by experts, but there’s little doubt that the pandemic will have a significant long-term impact on personal finances. Canvas8 worked with qualitative research company Verbate to speak to 17 Americans and Britons about the challenges they’ve faced during the crisis, what they’ve been spending on, and how they think their habits might change post-lockdown.

The thing I’m spending the most on is food. I live alone and, therefore, I only have to cater for myself, but I know that the money I usually spend on food has [risen]. At first, I thought [it] was double but now I would actually say [it] has tripled. My general weekly costing is an average of £25. I do a lot of fresh cooking. I’m not a big ready-meal fan, I don’t really indulge in takeaways.

Staying in has saved on expensive entertainment

I’m spending a lot less money, but I am spending more on food because I am home now all day… and [buying all] the cleaning products that I can find because I'm cleaning a lot more. So, anything that I can find that has bleach in it or any cleaning product that is in stock, or toilet paper, paper towels, things like that. I'm actually spending a lot more money on cards because I'm writing to my family a lot. My utilities have gone up a little bit because I'm using more water and more electricity.

I have started to cook a lot more at home and that [means] I'm spending more on groceries. I found myself to be a pretty good baker. I do see myself spending time and, of course, money in purchasing these groceries that are required and experimenting with different types of food. I would say [that] although I haven't stopped completely spending on retail, it has reduced a lot. Every now and then, if there is a good sale, I definitely would go ahead and do that purchase. After the restrictions are lifted, I would say I would definitely want to go out and shop.

I think our COVID spending habits have changed quite a bit. We are spending a lot more time at our house and cooking from home. So, a lot of our money is now spent on groceries to cook at home and not so much eating out. I don't think we've eaten out since early March. I'd say it's cut our credit card bills basically in half because of how much we used to spend going out and also seeing friends a lot and going to happy hours and trivia nights and stuff like that. The fun activities we do on our own we kind of stopped doing. Also, I think that our spending has shifted a little more to home projects. So, we've been doing a lot of Home Depot runs and probably go there quite a bit.

I do have more time now that I'm furloughed to be browsing online shopping. Before, I didn't really have as much time to randomly be looking at clothes and stuff online. I also am conscious of the fact that I don't really need to buy clothes right now because I only leave the house once a week to go grocery shopping. It's sort of a mixed bag, but I would say I'm spending more on clothes.

With travel restricted, many are spending less time behind the wheel

I've spent less money on leisure things. I haven't, obviously, gone to the cinema, or a theme park, or a night out, or gone to a music festival or a concert, so I'm saving money by not spending it on leisure... I've been playing a few online games, but they've been free anyway, so I've been able to entertain myself for free. A lot of things have still stayed the same, like my subscription services – Spotify, Netflix – are still the same. I'm not spending any more than I normally would.

I froze my gym membership because I didn't know how long this was going to last. Then, I looked at it and I thought, ‘actually, do you know what? It could be over a year before we get back into the gym’. So, I decided to buy three pieces of gym equipment: a Bowflex Max Trainer, a better workout bench, and some adjustable dumbbells. I was fortunate – I've got good credit, so I got that on a three-year 0% interest [plan]. It comes out cost-neutral because I cancelled my gym membership at that point. I'm spending less than the gym, but I've obviously spent a lot more on personal gym equipment to continue my fitness journey.

I have been spending a lot less money since COVID-19, so I've been able to save more. I noticed that of all my expenses, I kind of was able to reduce money in the form of entertainment. I'm not going to the mall, I'm not going to the movies... because a lot of these places have closed. Retail stores I haven't been to just because a lot of these have transitioned to online-only. Then, I guess the third category is gas. I haven't really even had to fill up my tank of gas. I've been working from home, taking classes from home, so I really haven't been travelling anywhere except for the grocery store.

I have been spending more money, but less frequently. I just shop once in bulk, spend like $200/$300 per time every couple of weeks. Before, I used to go to the store every two, three days and spend money sporadically. Less money, but less things. Now, it's like I'd buy everything I can and in bulk... Also, I'm not spending money on gas as I used to. I used to drive every day. Now, it's like once every couple of weeks.

Uncertainty has prompted people to rethink their savings

We do have some savings, so we're not too concerned about running out of money. Nevertheless, our income has dropped, especially mine as I’m self-employed. We're not spending money on things like holidays, eating out, going on trips, so we are saving money in that way. The one thing we're probably spending more money on is things for the house, the garden, some DIY jobs. But apart from that, we're just trying to be careful with what we're spending. I think as soon as the restrictions are lifted, we're really looking forward to booking a holiday again and may even just splash out on a decent one because we've missed so much through COVID and it could be a while.

Initially, we weren't sure whether our income was going to change, so we didn't spend money on anything that wasn't essential. We've kind of fallen into that state and that habit now because we still don't know whether our income will change. We're definitely spending less on going out, taking the kids out for day trips, eating out, and spending more on household groceries, things for the garden, activities for the children to do at home. How might it change as things are lifted? I think we'll continue to spend less money [on] eating out. We've realised how much we actually spend on takeaway food and convenience food, and we're all feeling a bit better for cooking, so I think we’ll continue to have a larger grocery bills.

We have to be careful to make sure that we save as much money now... should one of us lose our job. Both of us are in hospitality and it's obviously a big at-risk sector, so [we’re] definitely spending less, saving more. I don't know how this may change as restrictions are lifted. If everything work-wise goes back to normal then, yeah, we'll probably go back to spending what we were. However, it really has taught me that we need to make sure that we're creating ourselves a nest egg and that we're saving what we can, wherever we can.

I am in healthcare, so I've been working more hours since COVID started and I'm at home less now than I ever was before. So, I think being at work and being busy means I spend less money because I can't shop as much. Also, I am not shopping in person, of course, because of all the restrictions that are there. My online shopping has maybe gone up a little bit because I try to stay away from stores as much as possible. But, overall, my spending has actually gone down. I think as restrictions lift that my spending may go up. I'm hoping to continue to save because I feel like I saved quite a bit in the setting of COVID, which has been the positive of all of that.

I'm trying to clear out a lot of debt – primarily my mortgage debt – and, fortunately, any and all savings due to the COVID virus have been going to the mortgage. That way, I can kind of eliminate that uncertainty that comes with a pandemic. And if it does occur again, which is most likely in the future, my family will be much more secure now that we've eliminated that debt or decreased it significantly.

It's really going to be tough because now you have to be careful [as] a lot has been depleted in terms of finances. I have to try and manage what we currently have, and we have to be able to buy cheaper brands so we can... make sure that things are running. I don't think much is going to change when restrictions are lifted because we just want to try and be as careful as possible during this time.

There were uncertain situations with financial situations in the past, but one can always find another job. One can always change their situation to affect that uncertainty. Nowadays, I think we are having the most problematic situation in terms of financial security, because if today one is out of a job, it's very unlikely that they would find another job really quickly, maybe even at all, until we do go back to normal.

It has impacted all my family and everyone else, of course, around the country and around the world in that [financial] regard. A lot of people are probably spending less in terms of clothing and things of that nature. For myself, I would say that I'm spending more on groceries and those kinds of things. It is [having] quite a detrimental impact on many households and numerous communities around the world.

Kitchens are the heart of the lockdown household

Nearly all of Canvas8’s respondents noted that they’d increased their spending on groceries throughout the lockdown, with 31-year-old Londoner Sian saying that she’s splashing out three times more than normal. For many of these individuals, the shift to more home cooking has been a welcome addition to their lifestyles, and the increased food bill is offset by the fact they’re not going out to restaurants – something that Chelsea, a 27-year-old from Maryland, says has cut her credit card bills in half. However, for those keen to take a night off from cooking, numerous high-end restaurants (including 

) have joined the delivery market. The success of meal kit companies such as Gousto has also shown the demand for a helping hand in the kitchen, and as people continue to see the benefits of eating more at home, there are opportunities for brands to engage with home chefs even after lockdowns ease.

People are investing in their ideal home environment

During lockdown, the home has become the focus of people’s spending. This has led many to buy up gym equipment, DIY tools, and a host of cleaning products. Entertainment has also been limited to domestic options, boosting the reliance on streaming services. However, other entertainment providers have been quick to adapt, with theatres moving performances online and cinema chain Curzon teaming up with UberEats to deliver a complete 

. While governments are beginning to ease restrictions, there is still some way to go before people are confident to leave the safety of their households and resume normal spending habits, making their lockdown investments all the more valuable. Victoria, 39, from London, views her purchase of gym equipment as a long-term financial commitment and she’s likely to forgo a future gym membership to make it worthwhile.

We've realised how much we actually spend on takeaway food and convenience food, and we're all feeling a bit better for cooking, so I think we’ll continue to have a larger grocery bill.

While uncertainty may be discouraging people from spending too much, they’re still indulging in smaller purchases to provide amusement and comfort. Kimberley, a 24-year-old from London, says that being furloughed has given her extra time and browsing stores online has been one distraction, despite acknowledging that she doesn’t “really need to buy clothes right now because I only leave the house once a week to go grocery shopping.” For 33-year-old Texan Rakhee, visiting retailers is one of the things she’s most looking forward to once restrictions are lifted. The stress caused by the pandemic has already prompted a shift in buying habits, with 35% of Americans saying they’ve made an impulse purchase because of it. 

 These small indulgences can give people the satisfaction of having something without the guilt of spending a significant sum during a time of economic restraint.

While many respondents felt positive about savings they were able to make during lockdown, the majority showed an eagerness to protect themselves against future unknowns. For 37-year-old Chris, from Pennsylvania, stay-at-home orders have enabled him to make headway in paying off his mortgage, viewing this as an important step to safeguard his family against future upheavals. This commitment to saving could explain the disconnect between how people view national finances versus personal finances – in May, 88% of Americans felt that the coronavirus outbreak presented a major threat to the US economy, compared to just 41% who said it threatened their personal financial situation. 

 So, while people may be feeling uncertain about the wider economic situation, brands may resonate with them by helping them take control of their individual circumstances.

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Eastern Europe

United Kingdom

North America

United States

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Beauty and wellbeing

'One for the history books: 14.7% unemployment, 20.5 million jobs wiped away', NPR

'Britain's GDP falls by record 20.4% in April as economy is paralysed by lockdown', The Guardian

'More than one in four UK workers now furloughed', BBC News

'Video streaming services boom during lockdown in the UK', Kantar Worldpanel

'Gousto, a UK meal-kit service, raises another $41M as business booms under lockdown', TechCrunch

'People are panic-buying meat, toilet paper … and Pelotons', The New York Times

'Survey: 35% say stress from COVID-19 made them impulse-buy', Credit Karma

'Most Americans say federal government has primary responsibility for COVID-19 testing', Pew Research Center

The health crisis caused by COVID-19 is steadily making way for an economic crisis as businesses seek support in restarting operations and individuals face up to job insecurity. Canvas8 spoke to 17 people in the UK and US to find out how their spending habits have been impacted by the pandemic.

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