Actions

DWYM: Tips for what to do when your stimulus check arrives

DWYM:Tips for spending your stimulus checks
Posted
and last updated

The latest round of stimulus checks is already starting to show up in bank accounts.

Hopefully, you will receive yours in the next week, if you used direct deposit last time around.

But before you start shopping, consumer reporter John Matarese shows us what you should do first, so you don’t waste your money.

The stimulus checks are coming, and not just those $1,400 checks for adults, but also more money than ever for children.

Now the question: what’s the best thing to do with it?

The presses are running.

The checks are going out, or more likely heading into millions of bank accounts.

Raneesha Jackson says it will be a godsend for her family.

"How much will that help? Tremendously, bills and food," Jackson said.

Jenny Schwab plans to pay down some bills.

"Oh yes,” Schwab said. “Certainly, we can get things paid down."

A family of four could receive $5,000.

But before you buy that 70 inch TV, Kiplinger personal finance suggests you:

  • Pay off high-interest debt, such as credit cards.
  • Shore up your emergency fund, so you are prepared for the next downturn.
  • And put some in a 529 college fund for the kids, or for you.

But from the doesn’t that stink file, how all this stimulus money will help certain major retailers make even more money, while local stores struggle. And that stinks.

So Kiplinger's final tip: support local businesses near you, from boutiques to family-owned restaurants.

That way, everyone benefits from the stimulus.

So experts say spend a bit, but pay down any bills you owe first.

That way you don’t waste your money.