Cash Good: How will stimulus checks be spent?

The third round of federal stimulus checks will be distributed to the Americans. Depending on who you ask, here’s how the money is likely to be spent.

SAN ANTONIO – The third round of federal stimulus testing is gradually being distributed to Americans. Depending on who you ask, here’s how the money is likely to be spent.

Last Thursday, President Joe Biden signed a historic $ 1.9 trillion COVID-19 relief package. The legislation is designed to help the economy by providing financial aid to the struggling Americans. The relief plan calls for payments of $ 1,400 for most Americans. The checks are based on the recipient’s most recent tax return.

There are some polls that show various snapshots of how Americans are going to spend the money. According to Mizuho Securities, an investment banking and securities firm, some people plan to invest in stocks and bitcoin. However, according to data from a US Census Bureau survey and a US Bank survey, people reported that they plan to use the money to pay off debts.

“I think if people really need these stimulus checks, they’re going to be using them for all sorts of things that suit their needs, not their needs. I don’t know if as many people are getting money on the stock market with their stimulus checks as reported, ”said Karl Eggerss, Senior Wealth Advisor Partner of Federation. “The most recent round of stimulus has a lower income threshold, so not so many people are receiving the stimulus.”

While the aid package is supposed to save the Americans, Eggerss stressed that it will have an impact on the economy.

“Unfortunately, it’s a lot of money that is likely to be wasted. You think of $ 1.9 trillion. We would have fought against it over a year ago, ”said Eggerss. “This money doesn’t come from a helicopter for free, $ 1,400 checks. It has to be repaid by the next generation at some point. It usually does this through inflation or taxes. We actually saw gasoline prices go up. We have seen the prices of wood go up, we have seen all kinds of raw material prices go up. That’s inflation. “

The IRS has a so-called “Get My Payment” tool online on its website. Click here to check it out the status of your check.