On March 9th, 2020 the Dow Jones Industrial Average dropped 7.79%. This was the worst single-day drop in the U.S. Market for Dow Jones in history; the stock market crashed. The economy is suffering.
Why? More people are staying at home, which is leading to investors being pulled out of economic activity. According to Capital.com, we are in a global recession because of the novel coronavirus. A recession is when the economy doesn’t grow and it drops drastically. Many small businesses and investors are in a “financial panic” because of the affects the coronavirus is having on the economy. The reason why this is so important is that many people are losing their jobs and have little to no money left to provide for their families.
We know a lot of restaurants and stores are closing right now, even though it is bad, we are not at our worst. Over the past couple of weeks, 3.3 million people filed for unemployment claims across the nation, according to BuzzFeed. As the coronavirus continues in the upcoming months, it will take a while to make up the money our economy has lost.
This may sound hopeless, but today Trump and the House of Representatives just signed the 2 Trillion Dollar stimulus package that already passed in the Senate to help heal our economy. According to CNN.com, “The far-reaching legislation stands as the largest emergency aid package in US history. It represents a massive financial injection into a struggling economy with provisions aimed at helping American workers, small businesses and industries grappling with the economic disruption.”
Here are some options to help you make the right decisions with your money in the upcoming months. You should save a lot of that money. Only spend a certain amount of money; you want to do this because if you run out quickly it’ll be harder to get that amount of money back. You should put the rest of the money that you have in a checking account and keep it safe until circumstances are under control.
Take care, stay healthy, and stay safe. We will get through all of this together.