Tuesday, June 30, 2020

Working from home is costing Americans more than working from the office

By Jesse Gary
June 25, 2020

In March, the prospect of working from home due to shelter-in-place restrictions offered the allure of saving time and money. Three months later and only half that equation turned true. New research finds Americans are spending more, not less, each month.

“The average person working from home during the pandemic is spending an average of $108 more per month,” said Ted Rossman, an analyst for CreditCards.com, which commissioned the study.


San Jose State University economist Dr. Colleen Haight said economic theory can explain some of this behavior. She said shelter-in-place orders disproportionately affect lower-wage earners. The more affluent can afford not to spend.

“Our low income households are still spending more. Because now they’re eating at home. they’re leaving the lights on. They may need a more robust internet connection for their children to access school work. And this is going to raise their bills. whereas the higher income households are generally going to save money because they’re not spending on the things they used to like to do, the extra things,” said Dr. Haight.


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