Financial vulnerability and the impact of COVID-19 on American households

Summary

This PLoS One article, published in 2022 by Carol Bruce, Maeve E Gearing and colleagues at Westat in Rockville, Maryland, uses the Coronavirus Attitudes and Behaviors Survey, a nationally representative household survey conducted in May 2020 by Westat with Stanford University School of Medicine. It examines how COVID-19 affected household finances and how the impact varied by demographic characteristics, health risk factors and prior financial status, including employment. The survey reveals significant inequality: those most financially vulnerable before the pandemic came under greater financial strain, while more financially secure households saw a neutral or even positive effect. The authors say this matters for targeting aid to those who need it most.

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PLoS One
. 2022 Jan 14;17(1):e0262301. doi: 10.1371/journal.pone.0262301

Financial vulnerability and the impact of COVID-19 on American households

Carol Bruce
Carol Bruce

1 Westat, Rockville, Maryland, United States of America

Conceptualization, Formal analysis, Methodology, Software, Visualization, Writing – original draft

Find articles by Carol Bruce

1, # , Maeve E Gearing
Maeve E Gearing

1 Westat, Rockville, Maryland, United States of America

Conceptualization, Formal analysis, Methodology, Project administration, Supervision, Writing – review & editing

Find articles by Maeve E Gearing

1, *, # , Jill DeMatteis
Jill DeMatteis

1 Westat, Rockville, Maryland, United States of America

Conceptualization, Data curation, Formal analysis, Investigation, Methodology, Validation

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1, ‡ , Kerry Levin
Kerry Levin

1 Westat, Rockville, Maryland, United States of America

Conceptualization, Investigation, Methodology

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1, ‡ , Timothy Mulcahy
Timothy Mulcahy

1 Westat, Rockville, Maryland, United States of America

Conceptualization, Investigation, Methodology, Project administration, Supervision

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1, ‡ , Jocelyn Newsome
Jocelyn Newsome

1 Westat, Rockville, Maryland, United States of America

Conceptualization, Investigation, Methodology

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1, ‡ , Jonathan Wivagg
Jonathan Wivagg

1 Westat, Rockville, Maryland, United States of America

Conceptualization, Data curation, Investigation, Methodology, Project administration, Supervision

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1, ‡

Editor: Ali B Mahmoud 2

Author information

Article notes

Copyright and License information

1 Westat, Rockville, Maryland, United States of America

2 St John’s University, UNITED KINGDOM

Competing Interests: The authors have read the journal’s policy and have the following competing interests: All authors are paid employees of Westat, a private research company. This does not alter our adherence to PLOS ONE policies on sharing data and materials. There are no patents, products in development or marketed products associated with this research to declare.

‡ JD, KL, TM, JN and JW also contributed equally to this work.

✉ * E-mail: MaeveGearing@westat.com

# Contributed equally.

Roles

Carol Bruce : Conceptualization, Formal analysis, Methodology, Software, Visualization, Writing – original draft

Maeve E Gearing : Conceptualization, Formal analysis, Methodology, Project administration, Supervision, Writing – review & editing

Jill DeMatteis : Conceptualization, Data curation, Formal analysis, Investigation, Methodology, Validation

Kerry Levin : Conceptualization, Investigation, Methodology

Timothy Mulcahy : Conceptualization, Investigation, Methodology, Project administration, Supervision

Jocelyn Newsome : Conceptualization, Investigation, Methodology

Jonathan Wivagg : Conceptualization, Data curation, Investigation, Methodology, Project administration, Supervision

Ali B Mahmoud : Editor

Received 2021 May 12; Accepted 2021 Dec 21; Collection date 2022.

© 2022 Bruce et al

This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

PMC Copyright notice

PMCID: PMC8759691 PMID: 35030175

Abstract

In May 2020, Westat, in partnership with Stanford University School of Medicine, conducted a nationally-representative household survey of American attitudes and behaviors regarding COVID-19. In this article, we examine what the Coronavirus Attitudes and Behaviors Survey tells us about the impact of COVID-19 on financial status and how this impact varies by demographic characteristics, the presence of health risk factors, and financial status (including employment factors). The survey reveals significant inequality in financial impact, as those who were most financially vulnerable prior to the pandemic found themselves under greater financial strain, while those who were more financially secure have experienced a neutral or even positive impact of the pandemic on household finances. These findings have important implications for public policy as policymakers seek to target aid to those who need it most.

Introduction

The 2020 pandemic of novel coronavirus disease (COVID-19) has had a pervasive impact on almost all aspects of life, including the ability of individuals and households to financially support themselves. During February and March 2020, the total number of hours worked fell by 60 percent, driven by layoffs from employment and closure of businesses [ 1 ]. Hours worked increased in mid-April 2020, leveling off at 25 percent below the January 2020 baseline, and remaining at 35 to 30 percent below baseline through August 2020 [ 2 ].

Lower-income households with children experienced loss of income disproportionately [ 3 – 7 ]. The U.S. Census Bureau’s Household Pulse Survey in July 2020 showed that more than 60 percent of low-income households with children experienced an income shock due to COVID-19, resulting in food insecurity and difficulty paying bills [ 2 , 3 ]. Food insecurity in households with children rose in July 2020 to 32 percent, more than double rates measured in 2018 [ 2 ]. Larger households are most vulnerable to falling behind on household finances due to COVID-19, with each child in a household increasing the likelihood of financial delinquency by an additional 17 percent [ 5 ].

Hispanic and Black households also report disproportionate loss of income from the pandemic. Approximately 70 percent of Hispanic household heads reported experiencing an income shock during the pandemic, as of July 2020, compared to 60 percent of Black households and 50 percent of non-Hispanic White households [ 2 ]. Reductions in consumption following the income shock were 50 percent higher in Black households, and 20 percent higher in Hispanic households, compared to non-Hispanic White households [ 4 ]. The Pew Research Center’s American Trends Panel finds similar patterns in racial disproportionality, with 61 percent of Hispanics and 44 percent of Blacks reporting a loss of employment and wages during the coronavirus outbreak, compared to 38 percent of White respondents. Economic hardship is also reported at higher rates for racial and ethnic minorities, with 73 percent of Black and 70 percent of Hispanic adults reporting that they lacked emergency funds to cover three months of expenses (compared to 47% of Whites), and Blacks and Hispanics more often reporting that they would be unable to fully pay bills in April 2020 (48 percent Black, 44 percent Hispanic, vs 26 percent White respondents [ 6 ].

Households have responded to the loss of income and the threat of loss of income with a sharp decline in aggregate spending and an associated increase in saving since the onset of the pandemic [ 8 – 11 ]. Households’ ability to save was enhanced by the provision of government-funded stimulus payments and increased unemployment benefits [ 11 – 15 ]. However, the ability to reduce household spending and increase household saving is not universal. Recent household surveys reveal that one in five households have depleted their savings, fallen behind on housing payments, or are experiencing difficulty paying debts, buying groceries, and paying utilities [ 6 , 7 , 16 – 18 ].

This study will expand on this research regarding the impact of the COVID-19 pandemic on household finances. Specifically, the analysis examines whether those who are most vulnerable financially are disproportionately experiencing a negative financial impact from the pandemic. We also explore demographic variation in the impact of the pandemic on household finances, and how the financial impact varies by employment factors and for individuals with health risk factors.

Methods

Sample description

This study was approved by the Westat Institutional Review Board. The project number is 1065, FWA 00005551. Informed consent was obtained in writing.

The Coronavirus Attitudes and Beliefs survey was administered in May 2020. An invitation to participate in the online survey was mailed to 13, 590 randomly selected households across the United States. The online survey included a discussion of the risks and benefits of participation and solicited informed consent. The survey included questions regarding individuals’ beliefs about risk of becoming infected, likely consequences of contracting the virus, concerns about the impact of the virus, impact of the pandemic on household finances, and changes in behavior since the onset of the pandemic. After subtracting surveys that were not deliverable, 10 percent of those invited to participate completed the survey, yielding a sample of 1,222 respondents. The sample was weighted and adjusted for nonresponse, to yield a nationally representative sample for analysis. While low, the response rate is in line with that found in other nationally-representative web surveys [ 19 ]. However, we recognize the need for caution in the interpretation of these descriptive results; we include 95 percent confidence intervals, adjusted for non-response, with all findings.

Table 1 provides the distribution of the analysis sample by age, gender, race and ethnicity, marital status, size of household, education, and household gross annual income. The sample aligns with the distribution of the U.S. population on nearly all factors, with a slight disproportionality by race and by education. Black adults are underrepresented (9 percent in the sample versus 13 percent nationally), while Asians are overrepresented (8 percent in the sample versus 5 percent nationally). Regarding education, those who have some college or technical school are overrepresented (31 percent in the sample versus 26 percent nationally), while those who have a bachelor’s or professional degree are underrepresented (30 percent in the sample versus 36 percent nationally).

Table 1. Demographics characteristics.

Sample Size
Weighted Frequency
Standard Error
Percentage

Total

1222
253815197
3324800
100.00

Age

18 to 25 yrs
113
40461384
2401859
16.69

26 to 45 yrs
362
76425696
3235669
31.52

46 to 65 yrs
416
76962446
3219014
31.74

65 yrs or older
301
48630038
2041588
20.10

Gender

Male
531
122565576
626686
48.72

Female
681
129019577
765188
51.28

Race/Ethnicity

Hispanic
94
40874758
259877
16.33

White
1020
189238372
2145663
74.56

Black
67
22697827
2265332
8.94

Asian
76
20798513
2378938
8.19

American Indian/ Alaskan Native
20
8014481
2234061
3.16

Native Hawaiian/ Pacific Islander
10
2144684
970601
0.85

Other
44
13374093
2060264
5.27

Marital Status

Married
664
131701352
4646478
52.15

Widowed
63
9943835
1574697
3.94

Divorced
162
26580270
2975455
10.53

Separated
23
5428520
1299325
2.15

Never married
302
78873602
4042989
31.23

Number in Household

1
236
31276237
2782316
12.51

2
465
85807109
4127375
34.32

3
207
49197103
3799333
19.68

4
177
44861293
4230072
17.94

5 or more
122
38862849
8448049
15.55

Education

Less than HS diploma
39
29883311
1063300
11.86

HS graduate or GED
166
69172779
624789
27.44

Some college or technical school
200
51349468
2510793
20.37

Associate’s degree or professional certificate
117
26507343
2510793
10.52

Bachelor’s degree
399
46273239
1757095
18.36

Master’s or doctorate
293
28860538
1903888
11.45

Annual Gross Household Income

Less than 25k
118
35434915
3961825
17.90

25k – 49,999
175
43781293
3643766
22.11

50k - 74,999
197
37463241
3701604
18.92

75k – 149,999
299
52579998
4033776
26.55

150k or more
210
28758236
2788169
14.52

Open in a new tab

Source: Coronavirus Attitudes and Behaviors Survey, 2020.

Table 2 shows the sample distribution on health factors including diagnosed conditions that increase the risk of severe illness resulting from COVID-19 infection, having experienced COVID-19 symptoms, having been tested for COVID-19, and testing positive for COVID-19. The majority of respondents reported a diagnosis for one or more health conditions that are risk factors for severe illness from COVID-19 (52 percent). The most common conditions were high blood pressure (30 percent), depression or anxiety (25 percent), followed by respiratory condition (16 percent). Less common conditions were diabetes (9 percent), heart condition (8 percent), autoimmune disorder (5 percent), and kidney disease (2 percent).

Table 2. Health factors.

Sample Size
Weighted Frequency
Standard Error
Percentage

Total

1222
253815197
3324800
100.00

Health Risk Factors

None
509
111990349
4942789
47.55

1
346
67684006
4777217
28.74

2
166
36180999
3501416
15.36

3 or more
101
19650563
4637792
8.34

Diagnosed Conditions

High blood pressure
355
73697114
4103066
29.95

Depression/Anxiety
314
61285902
3987800
25.18

Respiratory condition
173
38819061
3479973
15.99

Diabetes
108
21950878
2681388
9.01

Heart disease
96
19292446
2816373
7.91

Autoimmune disorder
89
12527409
1678676
5.18

Kidney disease
28
4986774
1468621
2.07

COVID-19 Symptoms

Yes
157
27828511
2946696
11.03

No
1057
224387138
3011674
88.97

Tested for COVID-19

Yes
59
11911173
2056822
4.71

No
1160
241071511
2037478
95.29

Tested Positive for COVID-19

Yes
5
1302255
774292
0.52

No
1210
251052958
996138
99.48

Open in a new tab

Source: Coronavirus Attitudes and Behaviors Survey, 2020.

Approximately 1 in 10 respondents reported having experienced COVID-19 symptoms. As of May 2020, 1 in 20 respondents had been tested for COVID-19, and less than 1 percent (0.5 percent) tested positive for the virus. This is comparable to reported national rates of COVID for this period as reported by the CDC [ 20 ].

The literature review indicates that those who are most vulnerable (lower-income households, households with children, and households headed by racial and ethnic minorities) are disproportionately experiencing negative financial impact from the COVID-19 pandemic. Table 3 shows the distribution of the analysis sample on several factors that describe household financial status. The first measure indicates how well the respondent is managing household finances, with 1 in 5 respondents reporting that they are just getting by, and 11 percent reporting that they are having difficulty getting by. The survey also asks about strategies that would be employed if faced with an emergency expense ($400). The majority of the respondents (65 percent) reported that they would use cash to meet an emergency expense, while 2 in 5 respondents indicated that they would use a credit card for this purpose, and 1 in 10 would obtain a bank loan. The remaining strategies reflect limited access to cash or credit. The most common of these is to avoid payment of the obligation (28 percent), followed by selling something (24 percent), or borrowing from family or friends (22 percent). The least common strategy was to obtain a payday loan (6 percent).

Table 3. Financial factors.

Sample Size
Weighted Frequency
Standard Error
Percentage

Total

1222
253815197
3324800
100.00

Financial Management

Difficult to get by
89
28081949
3147397
11.13

Just getting by
187
50411041
4252633
19.98

Doing okay
534
108056047
5148955
42.82

Living comfortably
403
65817195
4486501
26.08

Strategies for meeting emergency expense

Borrow from family or friends
130
43218888
3917130
21.52

Payday loan
43
12705178
2473374
6.42

Sell something
157
47411465
4496956
23.76

Avoid payment
170
53020162
3909146
28.14

Bank loan
67
20075248
3384543
10.03

Credit card
892
170161980
10048921
39.13

Cash
681
140079339
4416525
65.24

Financial Vulnerability

None
701
114062565
4103436
44.94

1
224
50354533
3994529
19.84

2
98
25009786
2741508
9.85

3
64
19737907
3399066
7.78

4
61
20202822
2784622
7.96

5
38
13843768
2589201
5.45

6 to 8
36
10603816
3549674
4.18

Essential Worker

Yes
349
71453046
3985704
29.90

No
824
167545605
4141565
70.10

Change in hours worked outside of home

Decreased a lot
515
98490133
4811691
52.38

Decreased somewhat
84
19698965
2789492
10.48

No change
234
55411580
4523352
29.47

Increased somewhat
31
7876010
2057801
4.19

Increased a lot
22
6570374
1654239
3.49

Open in a new tab

Source: Coronavirus Attitudes and Behaviors Survey, 2020.

In order to capture the financial context in modeling the financial impact of COVID on households, we developed a composite measure of financial vulnerability. Recent research in the area of economics have employed measures of financial vulnerability that capture both financial instability and levels of debt [ 21 , 22 ]. For the purposes of examining financial vulnerability and disproportionate impact of the COVID-19 pandemic, we examine available resources (household income, access to cash or credit in an emergency) and ability to meet household expenses. This measure is an index variable, where each subject receives points on the index scale under the following conditions: 1) lower gross annual household income (2 points for annual household income less than $25,000, 1 point for annual household income greater than $25,000 and less than $50,000; 2) difficulty meeting household expenses (2 points for difficulty getting by, 1 point for just getting by); and 3) one point for each strategy for meeting an emergency expense that indicates limited cash reserves or access to credit (borrowing from family or friends, obtaining a payday loan, selling something, or avoiding payment). The score on this index ranges from 0 to 8. Just over one-half of the analysis sample (55 percent) exhibit at least one of these markers for financial vulnerability, with 1 in 3 respondents having a score of 2 or more on this measure.

Household financial status is also examined in regards to employment factors. Table 3 shows that 2 in 3 respondents experienced some reduction in hours worked, while 30 percent were essential workers.

Outcomes

The impact of the COVID-19 pandemic on household finances is examined on five factors. The first two are indicators of change in household income and typical weekly spending compared to the prior month. Table 4 shows that close to one-half of respondents (44 percent) experienced a decrease in household income, and approximately 2 out of 3 respondents (64 percent) reported a decrease in typical weekly spending.

Table 4. Financial impact outcomes.

Sample Size
Weighted Frequency
Standard Error
Percentage

Total

1222
253815197
3324800
100.00

Change in income

Decreased a lot
162
44782593
4455113
17.85

Decreased somewhat
287
65555383
4883951
26.13

No change
673
122049838
4931792
48.66

Increased somewhat
74
16471543
2218313
6.57

Increased a lot
11
1987607
799963
0.79

Change in spending

Decreased a lot
205
46340516
4056116
18.37

Decreased somewhat
614
115849395
5050220
45.93

No change
237
54839253
4561537
21.74

Increased somewhat
142
31514994
2918049
12.49

Increased a lot
14
3707591
1110816
1.47

Negative impact

Yes
218
44416914
3445397
17.50

No
1004
209398283
3445397
82.50

Neutral impact

Yes
532
96315996
4231512
37.95

No
690
157499201
4231512
62.05

Positive impact

Yes
118
19416005
2428251
7.65

No
1104
234399192
2428251
92.35

Open in a new tab

Source: Coronavirus Attitudes and Behaviors Survey, 2020.

Respondents were also given the open text prompt, “Please describe in your own words how you are managing financially during the pandemic.” Responses were uploaded to NVivo Version 11 for analysis. Inductive coding was used to classify responses. Three broad classifications emerged: negative financial impact, neutral financial impact, and positive financial impact. Subcodes were inductively derived within each of these classifications. Approximately 1 in 5 respondents (18 percent) described a negative financial impact, including increased cost of food, loss of income, and being unable to fully pay household bills. A neutral impact was described by 38 percent of respondents, including those who received government assistance, those who retired, and those who experienced no change in household finances. Only 8 percent indicated that they had experienced a positive financial impact, including reduced expenses, reduced spending, and a stable income.

Results

The first step of the analysis is an examination of demographic (including age, gender, race, household size, and education), health (risk factors for experiencing severe COVID-19 outcomes), and employment factors (essential worker status and reduction in work hours) that predict financial vulnerability. Table 5 shows the results of a multivariate linear regression analysis, predicting financial vulnerability. Each of these factors was tested first in bivariate models, and all significant bivariate predictors were entered into the multivariate model. Nonsignificant factors (p-values less than 0.05) in the multivariate model were then removed using a backwards selection process. The model results indicate that Hispanic respondents, those with less than a Bachelor’s degree, and those with one or more health risk factors were more vulnerable financially. White respondents and those who were married were less financially vulnerable.

Table 5. Predictors of financial vulnerability–demographic, health, and employment factors (multivariate linear regression).

Predictor
Regression Coefficient
Standard Error
p-value

Race/Ethnicity

Hispanic
0.66
0.25
0.0095

White
-0.65
0.21
0.0024

Marital Status

Married
-0.92
0.15
<0.0001

Education

Less than Bachelor’s degree
0.95
0.11
<0.0001

Health Risk Factors

1 or more
0.48
0.15
0.0013

Open in a new tab

Source: Coronavirus Attitudes and Behaviors Survey, 2020.

The second step in the analysis was to examine the influence of financial vulnerability, demographics, health factors and employment factors on the impact of COVID on household finances. Financial impact is examined in terms of loss of income; decrease in spending, reported negative impact (increased cost of food, loss of income, and being unable to fully pay household bills); reported neutral impact (receiving government assistance, retiring, and experiencing no change in household finances); and reported positive impact (reduced expenses, reduced spending, or stable income).

Table 6 displays the results of the multivariate logistic regression analyses, predicting the impact of the COVID-19 pandemic on household finances. For the purposes of this analysis, financial vulnerability is reduced to 2 levels, allowing a comparison of those with 2 or more vulnerability factors to those with 1 or no vulnerability factors. Respondents with only 1 vulnerability factor were included in the reference group to provide greater sensitivity in the indicator variable, as those with only 1 vulnerability factor (e.g., lower household income), would also have some protective factors (e.g., able to manage household finances sufficiently, while also having access to credit or cash in an emergency).

Table 6. Predictors of COVID-19 impact on household finances–financial vulnerability, demographic, health, and employment factors (multivariate logistic regression).

Predictor
Loss of Income
Reduced Spending
Negative Impact
Neutral Impact
Positive Impact

Financial Vulnerability

2 or more vulnerability factors
6.33 ***

ns
6.67 ***

0.10 ***

0.04 *

Race/Ethnicity

Hispanic
1.82 *

ns
ns
ns
2.71 *

Education

At least a Bachelor’s degree
ns
1.64 **

ns
ns
ns

Employment

Non-essential worker
ns
1.52 *

ns
ns
ns

Open in a new tab

Source: Coronavirus Attitudes and Behaviors Survey, 2020.

NOTE: Figures in cells represent the odds ratios.

† = p<0.10

* = p<05

** = p<0.01

*** = p<0.001.

Individuals who were financially vulnerable were 6 times more likely to experience reduced income during the pandemic, while Hispanics were almost twice as likely to have a loss of income. Individuals with less than a college degree and essential workers were less likely to have reduced spending during the pandemic (by 39 percent and 31 percent, respectively). Those who were financially vulnerable were almost 7 times more likely to experience a negative financial impact from the pandemic, while they were less likely to experience a neutral or positive financial impact (by 90 percent and 96 percent, respectively). For perspective, note that those who were not financially vulnerable were 10 times more likely to experience a neutral financial impact, and 25 times more likely to experience a positive financial impact of the coronavirus pandemic.

Discussion

The novel coronavirus disease pandemic (COVID-19) that began in Spring 2020 has had a substantial impact on the ability of individuals to effectively manage household finances. Researchers are only beginning to examine the nature and extent of this impact, while identifying the population segments that are experiencing the most severe impact and informing policy for providing the necessary supports for those who are struggling most. Current studies of the financial impact of the pandemic on individuals and households are based on aggregate public data, surveys that are not nationally representative, and cross-sectional surveys. This study employs a nationally-representative household survey to examine how the pandemic was affecting household finances in the earliest months of the pandemic. Although our study is descriptive rather than causal, and results should be interpreted with caution, they nevertheless help to illuminate the conditions facing American households as of May 2020. While identifying the subpopulations who are experiencing the most severe hardships (and those who appear more resilient), we also describe patterns of adaption to financial hardship, such as reductions in household spending.

As anticipated, and consistent with recent research findings, we find that those who are financially vulnerable (lowest incomes, limited access to cash and credit, and struggling to meet ordinary expenses) are most likely to experience negative financial impact from the coronavirus pandemic. The financially vulnerable are 6 times more likely to experience loss of income and nearly 7 times more likely to be negatively impacted by the pandemic. Those who are not financially vulnerable are 10 times more likely to experience neutral impact and 25 times more likely to experience positive impact during the pandemic. Those who are most likely to be financially vulnerable include Hispanics, those who are non-White, unmarried, and those who have less than a Bachelor’s degree. This group also includes individuals who have health conditions that put them at greater risk of severe illness or death if they contracted the virus.

In terms of race, we find that the increased likelihood of experiencing a negative impact for non-Whites is explained by a greater likelihood of this group being financially vulnerable. However, Hispanic ethnicity directly predicts loss of income. After controlling for financial vulnerability, Hispanics still have a greater likelihood of experiencing a loss of income during the pandemic by 82 percent. Interestingly, Hispanics also have a greater likelihood of experiencing a positive impact from the pandemic (nearly 3 times more likely), compared to non-Hispanics, when controlling for financial vulnerability. While on the surface, these findings may appear contradictory, it is possible that, even in the presence of reduced household income, some individuals may have been able to reduce expenses and spending sufficiently to have seen an overall improvement in their finances during the COVID-19 pandemic.

Reduced spending during the pandemic was the only outcome that did not vary by financial vulnerability. This outcome was predicted only by education level and essential worker status. Those with at least a Bachelor’s degree were 64 percent more likely to reduce their spending during the pandemic, while non-essential workers were 50 percent more likely to reduce spending. This may be due to the availability of discretionary income on the part of college-educated respondents and those who continued to work as essential workers during the pandemic.

Conclusions

While government-funded assistance was broadly available during the pandemic in the form of stimulus checks and expanded unemployment benefits, these measures were not sufficient to buffer the negative financial impact of the pandemic for those who are most vulnerable financially. This group includes racial and ethnic minorities, those who are unmarried, those with lower levels of education, and those with health conditions that put them at higher risk of severe outcomes from the coronavirus. This population, already struggling to provide basic necessities for themselves and their families prior to the pandemic, have been faced with reduced opportunities for earning wages and lack sufficient public support to buffer the impact of this public health crisis. Governmental efforts to counter the financial impact of the pandemic should be targeted to these most vulnerable individuals. Future research should examine the longer-term impact of the COVID-19 pandemic on household finances, in order to observe the extent to which individuals are able to adapt to the changing economy, or the extent to which financial hardship may persist or increase as the pandemic and associated lockdowns are eased or extended.

Supporting information

S1 File. Stanford university school of medicine coronavirus attitudes and behaviors survey. Survey Questionnaire.

(DOCX)

Click here for additional data file. (61.9KB, docx)

Acknowledgments

The authors thank the Stanford University School of Medicine team, led by Dr. M. Kate Bundorf, for their contributions to the development and fielding of this study.

Data Availability

The data files are housed at https://covid19.richdataservices.com/westat/westat_covid_2020/ .

Funding Statement

Westat provided funding in the form of salaries for CB, MG, JDM, KL, TM, JN, and JW. The specific roles of these authors are articulated in the ‘author contributions’ section. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.

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PLoS One. doi: 10.1371/journal.pone.0262301.r001

Decision Letter 0

Ali B Mahmoud
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22 Jul 2021

PONE-D-21-15762

Financial vulnerability and the impact of COVID-19 on American households

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Reviewer #1: See attached PDF.

Reviewer #2: The article examines the impact of COVID-19 on financial status and how this impact varies by demographic characteristics, the presence of health risk factors, and financial factors. The survey suggests that financial impacts are different especially to the financial vulnerable group, which experience financial difficulty even during non-pandemic situation. This paper addresses a topic of keen interest to several readers of the PLOS ONE. The research design in this paper is sufficient, appropriate and clearly justified. The empirical results appear to be competently implemented and the results have been clearly explained. The present draft needs minor modification and clarification as follow:

1) Please check the write up line 145. The sentence is as follow; …2 in 5 respondents reporting that they are just getting by…In Table 3, the percentage of “Just Getting By” is 19.98% but the 2 in 5 respondents show 40%.

2) Spelling error on line 255 “…wo are struggling”

3) Line 279 to 283 states that “After controlling for financial vulnerability, Hispanics still have a greater likelihood of experiencing a loss of income during the pandemic by 82 percent. Interestingly, Hispanics also have a greater likelihood of experiencing a positive impact from the pandemic (nearly 3 times more likely), compared to non-Hispanics, when controlling for financial vulnerability.” This statement seems contradict. Hispanics group appear to loss of income but experience positive impact from the pandemic. The statements need more clarification.

4) Line 287 to 289. “Those with at least a Bachelor’s degree were 64 percent more likely to reduce their spending during the pandemic, while non-essential workers were 50 percent more likely to reduce spending.” Please check the percentage accordingly in Table 6.

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Reviewer #2: No

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