WASHINGTON–Americans have begun receiving their stimulus checks from the federal government, and early data and anecdotal reports indicate most plan to spend the funds on necessities.
In all, approximately 125-million to 150-million Americans are expected to receive checks of approximately $1,200 (plus $500 per child 17 and under), depending on income, with 80-million set to receive payments this week via direct deposit.
Analysis by Netspend, which processed nearly $1 billion in relief payments by Monday, said its customers are using the government money quote for groceries fast food pharmacies and gas, as well as withdrawing cash from ATMs.
According to Netspend, more than half of the transactions were PIN-based at ATMs or grocery stores, and about a quarter we’re done online.
The Word on the Tweet
A Washington Post review of what people were saying on Twitter about their plans for spending the money included everything from paying credit card bills and child support to buying wish-list items such as shoes and video games.
The Post noted financial planners have been urging people to use the money to buy basic necessities or pay off debt, which should relieve pressure if someone loses a job.
The Washington Post said it also spoke with five people who had received their checks or saw them pending in their bank accounts. One was using it for rent, two were putting it towards student loans or college fees, another was saving it out of fear of being furloughed soon, and another planned to donate the money.
An earlier Gallup survey conducted last week found 35% of people plan to use the money to pay bills, 29% plan to save or invest, and 16% plan to use it on essential items such as food and gas.