To what extent do anxiety, economic uncertainty and stress as a result of the COVID-19 pandemic affect the rate individuals between the ages of 18-30 spend and save?

Abstract

In times of economic recession, individual decision-making is affected by and changes due to psychological factors such as anxiety, economic uncertainty and stress. The objective of this research is to analyse the effect of anxiety, economic uncertainty and stress on the saving vs spending decisions individuals between the age 18-30 make. This is relevant as its sheds a light on individual decision-making during times of recession and how psychological factors influence these decisions. Using data from 126 participants via an economic experiment, no support could be found for the hypotheses. Nevertheless, the results do suggest that anxiety, economic uncertainty and stress influence the decision-making process when it comes to saving vs spending decisions.