This week, millions of Americans received a $1,200 coronavirus stimulus check or deposit. Millions more will receive theirs soon. How should you spend that money? Here’s a top 5 list according to cnet.com.
1. Take care of your immediate needs. This includes things like food and your monthly bills like your mortgage. Any leftover funds could help pay down credit cards or other interest charging debts.
2. Pay your taxes. You now have until July 15th to file your taxes this year. If you owe money, you could use all or some of your stimulus check to cover the payment.
3. Start or add to an emergency fund. A fund that could cover your expenses for three to six months is a nice thing to have in uncertain times. While $1,200 probably won’t cover that, it can be a start.
4. Open an investment account for your children. Parents are receiving an additional $500 per child with the stimulus package. You could consider starting a 529 investment plan, which can be used for you children’s education.
5. Give to those in need. If you are lucky enough to have not been financially impacted during the crisis, you could consider giving at least some of your stimulus money to people who haven’t been as fortunate. From family and friends, to a food bank or a hospital.