Another stimulus plan was passed and the checks are going out. Who got them and where will they go? Will they be saved and invested, or will they be spent on necessities? Karl Eggerss answers these questions on CBS.
Sharon Ko: As stimulus checks have bank accounts, how will that money be spent? Will it depends on who you ask. According to Missoula Securities, it’s not going to be spent like the government intended and the people polled many say they plan to buy stocks and Bitcoin. However, if you look at the recent Census Bureau survey, it says the opposite. Recipients say the money will go toward necessities and paying down debt.
Karl Eggerss: I think people, if they really need these stimulus checks, they’re going to use it on all sorts of things for their necessities, not there wants. And so I don’t know if as many people put money into the stock market with their stimulus checks as was reported. Now this latest round of stimulus has lower income threshold. So not as many people will be getting the stimulus.
Sharon Ko: While this extra cash will help Americans who truly need it, financial advisor, Karl Eggerss, reminds us there are consequences down the line.
Karl Eggerss: Unfortunately, it’s a lot of money that is probably going to be wasted. I mean, you think about $1.9 trillion. We would have balked at that over a year ago and this money doesn’t come out of a helicopter for free $1,400 checks. It has to be paid back at some time by the next generation. And it’s usually done through either inflation or taxes, and 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.
Sharon Ko: Just like the last round. You can head to IRS.gov and use their online tool to get an update on the status of your check.