Beware of These 6 Money Risks Caused by COVID-19

May 27, 2020 1:15 PM ET
Article

The economic fallout from COVID-19 has been swift as many reel from faltering paychecks and falling investments. Add to that an increased concern for health and safety, and it’s easy to see why consumers today are, well, uneasy.

All this uncertainty can lead people to commit money blunders they wouldn’t commonly make. However, at a time when there are so many things outside of our control, it’s more important than ever to zone in on those within our control and avoid making unnecessary financial mistakes. Here are six areas where you should maintain your guard.

1. Price Gouging

The Problem: Many of us have seen the news accounts of stores or online sellers demanding unreasonable sums for hand sanitizer, toilet paper or face masks. It’s certainly common consumer behavior to pay a premium for an item you perceive as being in short supply, but it’s easy to lose a bundle by overpaying for goods unnecessarily.

The Remedy: The good news is that most consumer product brands have assured the public that supply chains are healthy, and they are continuing to manufacture the items that may temporarily be in short supply. In the meantime, see if you can substitute another item or borrow from a neighbor or friend via a porch pick up.

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