SAN ANTONIO — The third round of federal stimulus checks are beginning to get distributed to Americans. Depending on who you ask, here’s how the money will likely 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 support to struggling Americans. The relief plan includes $1,400 payments for most Americans. The checks are based on the recipient’s most recent tax return.
There are a few surveys that show different snapshots of how Americans will spend the money. According to Mizuho Securities, an investment banking and securities firm, some people say they plan to invest in stocks and bitcoin. But according to data by a U.S. Census Bureau survey and U.S. Bank survey, people reported that they plan to use the money to pay off debt.
“I think if people really need these stimulus checks, they’re going to use it on all sorts of things for their necessities, not their wants. I don’t know if as many people put money in the stock market with their stimulus checks as was reported,” said Karl Eggerss, senior wealth advisor partner of Covenant. “The latest round of stimulus has a lower income threshold, so not as many people will be getting the stimulus.”
While the relief package is intended to rescue Americans, Eggerss emphasized that it will have a ripple effect on the economy.
“Unfortunately,, it’s a lot of money that’s probably going to be wasted. You think about $1.9 trillion dollars. We would have balked at that over a year ago,” said Eggerss. “This money doesn’t come out of a helicopter for free, $1400 checks. It has to be paid back at some time by the next generation. It’s usually done through inflation or taxes. We’ve actually seen prices of gasoline go up. We’ve seen lumber prices go up, we’ve seen all types of commodity prices go up. That’s inflation.”
The IRS has what’s called a “Get My Payment” tool online on its website. Click here to check the status of your check.