Stimulus Check – How Consumers Are Using Stimulus Money

4th Stimulus check is a payment from the government that goes directly into consumer households to encourage spending in times of economic stress. These payments are intended to be a temporary boost that will stimulate the economy in the short term, as they can be distributed much faster than tax credits and will have a more immediate impact on spending.

This round of stimulus checks are being sent to individuals based on their 2019 tax filings, and will be distributed via direct deposit or paper check. Individuals whose modified adjusted gross income is less than $75,000 will receive $600 per adult in their household, and married couples who file jointly will receive $1,200 for each of their qualifying children under the age of 17. The amount of the check decreases by $5 for every $100 of additional income you make above these limits.

Beyond the Basics: Making the Most of Your Stimulus Check

The vast majority of households that received a check reported using it to meet their families’ basic needs, such as food purchases and rent or utilities. Those with the lowest household incomes were most likely to use their check for these expenses, while those with higher incomes tended to put their check toward savings or paying down debt.

Respondents who were non-Hispanic Black were most likely to report using their check mostly for expenses (83 percent), while those who were Hispanic or Asian were least likely to do so. Households with children were also more likely to use their check for expenses than households without children.

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