Millions of people had their coronavirus economic stimulus payment deposited in their bank account over the last week. (Where’s yours? Check the status HERE.) Of course the inclination for a lot of us is to blow it on something fun! And ok–maybe siphon a little off for fun stuff, but experts have a ton of suggestions that are way more responsible. Here are five tips on how to be smart with it when it does come . . .
1. Take care of your immediate needs. If you need to stock up on food for your family, pay off some bills, or catch up on your rent or mortgage, this is the way to do it. If you’re square in those areas, think about throwing it at any credit card debt.
2. Pay your taxes. Yes, the deadline to pay your taxes was extended until July 15th. But wouldn’t it be great if that date came and you didn’t have to worry because you already paid? It sounds painful, but send that stimulus check right back to the government and cover the taxes you owe.
3. Start or add to an emergency fund. A good rule of thumb for an emergency fund is enough to cover expenses for three to six months. And while $1,200 likely won’t cover that, it can be a decent starting point.
4. Open an investment account for your children. The stimulus package includes an additional $500 per child. And if you don’t need that money for necessities, consider starting a 529 investment plan for your kids, which can be used for their education.
5. Give to those in need. If you’re one of the lucky few who haven’t been impacted financially during the crisis, consider giving at least some of your check to people who haven’t been as fortunate. That could be anything from a food bank to a non-profit who’s fundraiser has been cancelled due to COVID-19. Or even to support a hospital with PPE or other groups serving first responders.
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