A study by the Federal Reserve Bank of New York reveals how Americans have spent their first stimulus check payment.
Last March, the U.S. government passed the CARES Act, the largest economic bailout in the country’s history. Through this stimulus package, the U.S. government addressed the labor and economic crisis that followed the still latent outbreak of the coronavirus.
One of the biggest benefits included in this package, without a doubt, was the distribution of a $1,200 stimulus check to individuals and up to $2,400 in joint statements, not to mention the $500 extra per dependent.
According to the most recent report from the Department of the Treasury, in conjunction with the Internal Revenue Service (IRS), more than 160 million Americans received timely payment of the check.
Now, nearly seven months after the distribution of the stimulus check, a study by the Federal Reserve Bank of New York has revealed how Americans have spent their first stimulus payment.
First Stimulus Check: How Have Americans Used the Money?
According to the study, most Americans used the money from the first stimulus check to save money and pay off debt. Approximately 36% of stimulus payments went into savings.
Thirty-five percent of the stimulus payments were used to pay off debt, while about 18 percent of Americans spent the money on commodities, 8 percent of citizens used the money to buy non-essential goods, and only 3 percent donated their money.
That said, the first stimulus check played an extremely important role for the economy of millions of American families, so it is estimated that, if there is a second round of checks, the money will be used equally for savings and debt repayment; although of course, for the moment, the future of a new economic bailout remains uncertain, as Democrats and Republicans have failed to reach a bipartisan agreement.