From April through May, Americans with low and middle incomes received a check to help them weather the economic crisis brought on by the coronavirus. What did these people do with the money they received?
A recent study by the National Bureau of Economic Research did an analysis to find out how citizens are using their stimulus checks.
The result of the investigation showed that people are struggling to pay the bills and that most of the money was used to keep their homes and food on the table.
This follows from the things Americans chose to do with their $ 1,200 stimulus checks.
1. 15% of recipients said they spent or will spend most of their stimulus check.
2. 33% of citizens used their stimulus check to save.
3. 52% of taxpayers paid their debts.
Overall, the report found that low-income households were more likely to spend their stimulus checks, high-income people were more likely to save the money, and those with mortgages or renters chose to pay off their home debt.
In June, a similar poll by YouGov had revealed that nearly a third of people who received a stimulus check said they used their money to pay bills and make ends meet.
Paying bills was flagged as the number one priority and included bills for cell phones, utilities, cable TV, and rent, before buying essentials, MarketWatch reported.
This is why economists believe a second round of stimulus checks would be good news for all Americans when the economic and employment crisis seems far from ending.