13 bad money habits you likely picked up during the pandemic
The pandemic crisis may have faded, but the financial reflexes it hardwired into us are still running the show.
The pandemic didn’t just change how we greet each other or wear masks; it fundamentally rewired our relationship with money and spending. Many of us shifted from careful budgeting to a “live for today” mentality almost overnight as the world locked down. We started justifying impulse purchases as necessary coping mechanisms for the stress and boredom of being stuck at home.
Now that the world has opened back up, those temporary survival tactics have unfortunately hardened into permanent, costly habits. We are still swiping, clicking, and subscribing with the same intensity, even though the emergency context has largely faded away. It is time to take a hard look at the financial baggage we are still carrying from those years and see what needs to be unpacked.
Doom Spending To Cope With Stress
You likely remember the anxiety of refreshing news feeds, but for many, that fear translated directly into retail therapy on steroids. A recent study by CreditCards.com found that 20% of Americans are “doom spending” to manage economic uncertainty. This involves making mindless purchases to soothe anxiety about the state of the world or personal finances. It is a vicious cycle where spending money momentarily relieves stress, only to create more financial stress later when the bill arrives.
Breaking this habit requires identifying the emotional trigger before you click “buy” on that checkout screen. Instead of shopping when you feel anxious, try to find a free or low-cost activity that helps you decompress. You could go for a walk, call a friend, or read a book to distract yourself from the urge to spend. Your mental health and your bank balance will both thank you for finding healthier coping mechanisms.
The Little Treat Culture
The concept of the “little treat” exploded on social media as a way to reward ourselves for simply surviving another day. According to Fortune, nearly 60% of Gen Z say these frequent small purchases lead to overspending. A five-dollar coffee or a fancy snack feels insignificant in the moment, but these daily indulgences stack up incredibly fast over a month. We stopped looking at the total cost and focused only on the immediate dopamine hit of a small, affordable luxury.
You do not have to deprive yourself of all joy, but you should be intentional about where your money goes. Try tracking every single “little treat” for just one week to see exactly how much cash is leaking from your budget. You might be shocked to find that those small rewards are costing you hundreds of dollars a month. Turning a daily habit into a weekly reward makes it feel more special and keeps your finances in check.
Subscription Creep And Overload
We signed up for every streaming service imaginable when we had nothing to do but sit on our couches. A 2025 CNET survey revealed that the average U.S. adult now spends $1,080 per year on subscriptions, with nearly $200 going to services they do not even use. We often forget about these recurring charges because they are set to autopay, slowly bleeding our accounts in the background. It is easy to justify keeping them “just in case” there is a show we want to watch later.
Audit your bank statements this weekend and be ruthless about canceling anything you have not used in the past month. If you really miss a service, you can always sign up again later, but you probably won’t miss it at all. Consider rotating your services rather than paying for all of them simultaneously throughout the year. This simple administrative task can put hundreds of dollars back into your pocket with minimal effort.
Relying On Buy Now Pay Later
Services that let you split payments became a lifeline for some and a trap for others during the uncertainty of the last few years. Empower 403 recently reported that monthly Buy Now, Pay Later (BNPL) spending increased by almost 21% from June 2024 to June 2025. These services make expensive items feel affordable by breaking the cost into smaller chunks, tricking your brain into thinking you are spending less. It encourages impulse buying because the immediate pain of parting with cash is removed or delayed.
The danger lies in stacking multiple payment plans on top of each other until your monthly income is consumed by micro-debts. Treat these services like any other form of debt and only use them if you have the cash to pay the full amount today. If you cannot afford to buy it outright, you likely cannot afford the payments that will follow. Excessive use of these tools can quickly spiral out of control and damage your credit score.
Revenge Spending On Travel
After being grounded for so long, millions of Americans rushed to book trips the moment borders reopened. This phenomenon, known as “revenge travel,” saw people blowing through their savings to make up for lost time and missed experiences. We justified the exorbitant costs of flights and hotels by telling ourselves we deserved it after the lockdowns. While travel is wonderful, funding it with high-interest debt is a habit that can ruin your financial stability.
You can still explore the world without wrecking your finances by planning and saving specifically for your trips. Create a dedicated travel fund and contribute to it monthly so you can enjoy your vacation without the post-trip guilt. Look for off-season deals or closer destinations that offer a change of scenery without the high price tag. Memories are sweeter when you are not paying for them with credit card interest for years to come.
Dependency On Food Delivery
We got used to the convenience of having everything from tacos to toilet paper delivered to our doorsteps. Spending on food delivery skyrocketed 924% from 1997 to 2024, hitting a massive $100.5 billion, according to the American Farm Bureau Federation. What started as a safety measure has morphed into a laziness tax that we pay almost daily. The delivery fees, service charges, and tips can easily double the cost of a simple meal.
Cooking at home is one of the fastest ways to slash your monthly expenses and improve your health. Challenge yourself to delete the delivery apps from your phone for thirty days and see how much money you save. Meal prepping on Sundays can help you avoid the temptation of ordering out when you are tired after work. You will likely find that your homemade meals taste better and leave you feeling financially lighter.
Carrying Credit Card Balances
During the height of the pandemic, many people used credit cards to bridge income gaps or cover unexpected emergencies. Total U.S. credit card debt hit a staggering $1.28 trillion in the fourth quarter of 2025, according to the New York Federal Reserve. Unfortunately, the habit of rolling over a balance has persisted even as employment numbers have stabilized. High interest rates mean that carrying this debt is more expensive now than it has been in decades.
Prioritize paying down high-interest debt above almost all other financial goals to stop the bleeding. Consider using the avalanche method, where you pay off the card with the highest interest rate first, or the snowball method for quick wins. Every dollar you pay in interest is a dollar you cannot use for your future or your family. Shifting back to using cash or debit can help you break the cycle of spending money you do not have.
Guilt Tipping Everywhere
The pandemic brought a wave of sympathy for service workers, leading to higher tipping on everything from takeout to coffee. Now, digital payment terminals prompt us to tip 20% or more for counter service, creating a sense of social pressure and fatigue. We often tap the highest option just to avoid the awkwardness of selecting “no tip” while the cashier watches. This “guilt tipping” adds a significant percentage to our discretionary spending without us really planning for it.
It is okay to return to standard tipping etiquette now that the acute crisis phase has passed. You should feel free to tip based on the quality of service rather than out of a sense of obligation or guilt. Define your own tipping rules for different scenarios and stick to them regardless of what the screen suggests. Remember that a tip is a gratuity for service, not a mandatory surcharge for buying a product.
Online Shopping When Bored
Without the ability to go out, our screens became our primary source of entertainment and our shopping malls. We developed a muscle memory of opening shopping apps whenever we felt a moment of boredom or loneliness. This mindless scrolling often leads to purchasing things we do not need and will likely never use. The ease of one-click ordering removes the friction that usually gives us time to reconsider a purchase.
Remove the temptation by unlinking your credit card information from your favorite shopping sites and apps. Forcing yourself to manually enter your payment details every time gives you a moment to pause and ask if you really need the item. You can also institute a mandatory 24-hour waiting period for any online purchase over a certain dollar amount. Unexpected packages showing up at your door should not be a regular surprise in your life.
Neglecting Emergency Funds
Many people had to drain their savings to survive layoffs or health issues during the last few years. A 2025 study by Bank of America found that 55% of Gen Z currently do not have enough emergency savings to cover three months of expenses. The “YOLO” (You Only Live Once) attitude that followed the reopening led many to prioritize spending over replenishing those safety nets. Living without a cushion leaves you vulnerable to the next minor car repair or medical bill.
Rebuilding your emergency fund should be a non-negotiable line item in your monthly budget, no matter how small. Start by automatically transferring a small amount from every paycheck into a separate savings account that you cannot easily touch. Even five hundred dollars can be the difference between a minor inconvenience and a financial disaster. Treating savings as a bill you have to pay helps you prioritize your future security.
Lifestyle Creep
As the world returned to normal, we combined our new pandemic habits with our old pre-pandemic expenses. We kept the multiple streaming services and premium grocery delivery while adding back gym memberships, commuting costs, and happy hours. This phenomenon, known as lifestyle creep, means our spending rose to meet or exceed our income without us noticing. We essentially doubled down on expenses, assuming our budgets could stretch to accommodate both lifestyles.
Sit down and list your current monthly expenses next to what you spent in 2019 to see the difference. You need to decide which version of your life you can actually afford and cut the expenses that do not fit. You are likely paying for duplicate services or conveniences that you no longer need. Simplifying your life can reduce financial stress and give you more clarity on your goals.
Hoarding Cash In Low Yields
Fear of market volatility drove many people to pull their money out of investments and keep it in checking accounts or cash. While having cash on hand feels safe, inflation erodes its purchasing power over time if it is not earning interest. Many are still keeping large sums in traditional accounts that pay almost nothing, effectively losing money every year. The paralysis caused by economic bad news has kept people on the sidelines for too long.
Look for high-yield savings accounts that offer decent interest rates for your liquid cash. You do not have to be a stock market expert to make your money work harder for you than it does in a standard checking account. Excessive caution can be just as damaging to your long-term wealth as reckless spending. Consulting a financial advisor can help you find a balance between security and growth.
Ignoring Student Loans
The long pause on federal student loan payments caused many borrowers to mentally write off that debt. For over three years, people used that extra cash flow for lifestyle upgrades, effectively absorbing the loan payment into their daily spending. Now that payments have resumed, many are struggling to fit that substantial bill back into their budgets. The habit of ignoring this debt has led to a rude awakening and a scramble to adjust.
You must treat your student loan payment as a mandatory fixed expense, just like your rent or mortgage. Review your budget immediately to see where you can cut back to accommodate this returning financial obligation. Ignoring the letters or emails from your loan servicer will only lead to default and a damaged credit score. Taking proactive steps now will prevent this old debt from derailing your current financial life.
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