75% of people used the first stimulus check to cover household expenses.
Photo: Chip Somodevilla / Getty Images
Millions of people in the United States have already received a third stimulus check, and many of them have already spent it in different ways. In total, citizens have received more than $ 850 billion in stimulus checks between the three different ones, which were given out to help people overcome the coronavirus pandemic.
People used their stimulus checks in the following ways, according to research from the Peter G. Peterson Foundation:
First stimulus check
With this first support, 75% of people used it to cover household expenses. It should be remembered that the first stimulus check was issued for the most part in April 2020, when the unemployment rate was 14.7%, and there was greater uncertainty about the duration of the pandemic.
Second stimulus check
Spending patterns underwent a change for the second stimulus check.
On the second check, 22% of people decided to make basic purchases, 51% used it to pay off debts, and 26% decided to save money.
Third stimulus check
In this case, 19% decided to spend the stimulus check on basic purchases, while 49% of people decided to use the money to pay debts, and 32% saved all the money.
Research from the Peter G. Peterson Foundation is inconclusive on how much stimulus checks have helped the nation’s economy. That said, check payments may have contributed to increased personal income, consumer spending, personal savings, and economic growth.
The Congressional Budget Office estimates that stimulus checks under the Cares Act increased economic output in the US by 0.6%.
By comparison, the increase in unemployment benefits boosted the economy by 1.1%, while the Payment Protection Program (PPP) generated a 0.8% increase, as reported in Forbes.
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