How did Americans spend their $1,200 stimulus checks? Here’s what a survey found
A recent survey found that the majority of Americans saved their stimulus payments or used it to repay debts.
The CARES Act went into law in March and provided most Americans with direct payments during the coronavirus pandemic. Individuals earning up to $99,000 got $1,200, and joint filers earning up to $198,000 received $2,400, plus $500 for dependents under the age of 17.
Data from the New York Federal Reserve, which surveyed 1,300 U.S. households June 10-30 and August 6-21, found an average of 29% of Americans spent their stimulus money on consumption, such as food, utilities and housing. Thirty-six percent saved their money, while 35% used the stimulus money to repay their debts.
The survey found people who had an income of $40,000 or less used a larger portion of their checks to repay their debts, and those who had an income of $75,000 or more used more of their stimulus money for their savings. Around 40% of stimulus money went toward debt repayment for those making $40,000 or less, compared to people who make $75,000 or more annually, who used around 30% of their stimulus money for repaying debts.
People between the ages of 41 and 60 also used a greater portion of their check to repay debts compared with ages 40 and below and ages 60 and above.
Of those who spent their money on consumption:
18% spent it on essential living expenses
8% spent it on leisure, vacation and hobbies
3% donated to charity
A U.S. Census Bureau survey released in June found the majority of respondents said they planned to use the stimulus money for household expenses, while people in households with incomes between $75,000 to $99,000 were more likely to use their checks for savings or debt repayment.
According to the census survey, 15.7% of respondents used their check to pay off debt and 14.1% saved the money. The survey was conducted June 11-16 with 73,472 U.S. households.
