5 ways coronavirus is changing millennials' money habits more than any other generation

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5 ways coronavirus is changing millennials' money habits more than any other generation
millennial coronavirus

Coronavirus may put most millennials at less physical risk than older generations, but it may be changing the generation's spending habits more.

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They're already cutting back on spending in case coronavirus leads to a recession, and they're taking the shopping they are doing online to avoid going out in public. They're also taking advantage of delivery apps more than usual.

And when it comes to affording coronavirus treatment and screening, many millennials are worried. More than one-third of insured millennials aren't confident they could handle costs, according to a First Insight survey, and they said they might have to borrow money from family or the bank to afford it.

But not all millennials are as concerned about coronavirus or practicing social distancing. Some are capitalizing on cheap coronavirus flights to see the world or take a vacation.

Here's how coronavirus is affecting millennials' financial behavior.

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Generation Z from Business Insider Intelligence

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1. Millennials are cutting back on spending in the event of a coronavirus-related recession.

1. Millennials are cutting back on spending in the event of a coronavirus-related recession.

Millennials — and Gen Z — are tightening their wallets as coronavirus sparks recession fears.

While those of all generations are concerned about the financial effects of the coronavirus, "millennials' behavior is changing more dramatically than any other generation," Greg Petro, CEO of retail analytics company First Insight, told CNBC's Lauren Thomas. "They are going to cut their spending."

Over half (54%) of millennials surveyed said the coronavirus has impacted their purchase decisions — more than any other generation, according to a First Insight survey published on February 28. It's caused 40% of millennials to say they're cutting back on spending in preparation for coronavirus.

2. When millennials do shop, they're doing so online.

2. When millennials do shop, they're doing so online.

Millennials are also cutting back on in-person shopping trips — 39% said they're shopping less frequently in stores, compared to 30% of overall respondents, reported Thomas, citing the First Insight survey. And 30% said they're shopping more frequently online instead, compared to 21% of respondents across all age ranges.

That includes online grocery shopping, which has seen an uptick in demand thanks to coronavirus.

Consider online grocery ordering service FreshDirect, which said it's seeing an increase in orders from both new and existing customers, Thomas reported. "Our data leads us to believe customers are preparing more meals at home, and are consuming more fresh and organic food to stay healthy," Chief Merchandising Officer Scott Crawford said in a statement Thursday.

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3. And they're taking advantage of delivery apps and services more than ever.

3. And they're taking advantage of delivery apps and services more than ever.

Thirty percent of millennial respondents in the First Insight survey also said they're taking advantage of curbside pickup.

Coronavirus has spurred the rise of no-contact food delivery, Hilary Russ reported for Reuters. Instead, delivery drivers are leaving meals on doorsteps and orderers are texting their drivers pictures of where they want their food dropped off, she wrote. Delivery apps Postmates and DoorDash are both rolling out contactlesss delivery.

However, as the coronavirus spreads, worries over contaminated food and a scarcity of drivers in the event of a quarantine could put delivery app usage on the decline, Sibile Marcellus reported for Yahoo.

4. Some millennials are buying cheap airline tickets.

4. Some millennials are buying cheap airline tickets.

While many people are canceling, rescheduling, or changing trips, millennials are taking advantage of cheap flights, reported Ben Kesslen for NBC.

In a time when coronavirus has decimated air travel, airlines are dropping prices and offering flexible ticket policies to some locations. The 20-somethings Kesslen spoke with said they want to capitalize on this for various reasons: to explore new destinations, enjoy a vacation, or see family.

"I feel like if the coronavirus would get even more serious and like wipe out a large amount of people, I might as well be somewhere having fun," Ashley Henkel, a 20-something who booked flights to Vancouver, New York City, and Portland, Oregon, for the summer told Kesslen.

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5. Millennials are more likely to turn to other sources for help paying for coronavirus treatment costs.

5. Millennials are more likely to turn to other sources for help paying for coronavirus treatment costs.

Nearly half of insured Americans think they can't afford to get sick with coronavirus, according to a Healthcare.com and YouGov poll. But younger people are more concerned about paying for coronavirus treatment and testing than older people.

Of those ages 18 to 34, 35% aren't confident they could deal with costs compared to 24% of those ages 55 and older, according to additional poll data Healthcare.com provided to Business Insider.

That might explain why respondents between age 18 and 34 are five times more likely than those who are 55 and older (24% vs. 4%) to borrow money from family members to afford coronavirus costs. They're also more likely to put costs on their credit card, but only by three percentage points more.

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