While business news pundits are predicting a wave of “revenge spending” from Americans who have been cooped up during the pandemic, it’s also likely that many Americans will become much more careful when it comes to handling their finances. While many Americans are eager to return to “normal” pre-pandemic lifestyles, a substantial number of Americans are reporting feelings of “reopening anxiety“, which often includes simply not being interested in spending as much time going out in public or hanging out with family and friends. Also, while many Americans did suffer economic  hardship as a result of pandemic shutdowns, others were lucky enough to keep working the entire time, and between a substantial reduction in elective spending, and multiple rounds of stimulus checks, they’re more flush than they’ve been in years.

That feeling of being in good financial shape has many Americans thinking that “I really like having my credit cards and car all paid off, and I like the fact that even if my job did disappear, I’ve got three to six months worth of expenses sitting in the bank”. Although observations are anecdotal at this point, it appears that a tendency towards “reopening anxiety” and a desire for increased thriftiness are most common among people who are naturally somewhat introverted. There is also the possibility that neuroplasticity is involved, and that the experience of a pandemic shutdown may have led to enhanced development of the amygdala in many individuals, resulting in an increased desire to protect oneself from future social or financial calamity.

While this phenomenon does suggest an increased savings rate in the US and the potential decline in credit card charge-offs and other debt defaults, it’s very bad news for industries that depend on high levels of elective spending. Hotels, vacation destinations and sit-down dining establishments are all likely to face a long-term pinch as the “new thrifty” start tightening their belts. It’s also possible this desire for thrift could lead to an acceleration of the exodus from large American cities with high residential and office rental rates, and a resurgence of many of America’s older cities. Leaders of America’s aging urban centers like Rochester, NY and Baltimore, MD may be able to revitalize their economies by touting the relatively cheap living and working space their cities have to offer.

It’s naive to imagine that post-pandemic life will be just like pre-pandemic life. While some individuals will return to their old habits, one should expect that many Americans have adapted to being wallflowers and penny-pinchers. This change in habits will have long term impacts for urban leaders, small business lenders and entrepreneurs. The business owner who sits at their desk complaining that things haven’t gone back to the way they used to be will not thrive in this environment. The successful leader will expect change, and try to modify his or her business practices to capitalize as much as possible from that change.