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As Congress debates a new stimulus package, and Americans anticipate the possibility of a second government stimulus check, a new survey showed that stimulus checks last spring went mostly to cover rent and mortgage payments, as well as other "household expenses."
Credello, a personal finance tool, recently released these findings.
This past April, all U.S. residents who were eligible received a stimulus check (officially known as an Economic Impact Payment) thanks to Uncle Sam (officially known as the federal government).
These funds (each check was worth up to $1,200 for individuals or $2,400 per married couple, plus an additional $500 for each child under 17) are meant to help Americans navigating the devastating economic impact of the current COVID-19 pandemic.
It is anticipated that yet one more round (at least) payments could go out (most likely even before the November elections). However, it is reported that negotiations have stalled in Congress. It is believed that all those who received a stimulus check the first round would also receive one this next round as well.
So the question is posed: What Will Do With Your Funds Received? Before answering this question, the U.S. Census Bureau surveyed recipients, asking them what they spent their first round of federal funds on. According to the survey, the majority of adults in American households either did— or planned to—use most of the money toward some kind of household expense.
Broken down below are just some of the most popular responses for how stimulus checks were spent:
80% used the money for food
78% spent the money on rent/mortgage and/or utilities
58% used the money for household supplies and personal care products
20% spent the money on clothing
10% planned to spend the money on household or recreational goods
33% planned to use the money to pay off debt or add to savings
As they anticipate a possible second round of stimulus checks, experts advise all Americans who are able to do so (read: those who have their survival necessities met) should continue to focus on paying down their debts.
