A key part of the federal government’s stimulus efforts may already be in your pocket. One-time checks of $1,200 -- or $2,400 for families -- can be helpful as you navigate this crisis. Furthermore, families with children will receive an additional $500 per child.
If you’re wondering how to best use your stimulus check, we have some tips.
1. Open a bank account
If you don’t have a checking or savings account to deposit your check—get one now! Otherwise, you may have to give away a percentage of your stimulus money to a bank or check cashing company. The apps NerdWallet and TrustFund are great resources for finding an account or card that works best for you.
If you don’t usually file a tax return, you can submit your information here to get your one-time Economic Impact Payment via direct deposit.
2. Stick to the essentials
Online shopping may be tempting, but consider prioritizing the essential groceries and household items you and your family need. Plus, this will help you get the most out of your stimulus check. If you shop, consider opting for small, locally-owned businesses. Those shops and restaurants need a boost right now, and every single customer helps.
3. Start saving
Whether you buy some stocks or open a new savings account, it’s never a bad idea to prepare for retirement.
4. Create an emergency fund
These stimulus checks are the perfect way to build your emergency savings. An emergency fund is not about maximizing interest or returns; it’s about providing you with peace of mind that you have money available as a safety net for unexpected expenses. Given that millions of Americans are likely to face extra bills and other financial difficulty in the coming weeks, you might consider setting aside part of your stimulus check for that potential emergency.
Keep in mind that emergency funds should always be readily accessible.
5. Pay debt
In addition to adding to your emergency fund, you can use part of your stimulus money to pay down credit cards. Some companies are being flexible during this pandemic, so if you are not able to make your minimum payment by the due date, ask your card issuer or service provider if they are making any concessions to customers.
To avoid late fees and other penalties, remember to pay at least the minimum payment by the due date for all credit cards and bills.
6. Give
If you find yourself in a position where you do not need your stimulus check for either current spending or personal savings, now is a great time to help your Denton County community. Through our COVID-19 Relief & Recovery Fund, we are working to address emergency needs and plan for longterm recovery from the COVID-19 crisis. Your donations will help neighbors who've lost jobs pay rent and utility bills, feed families facing food insecurity for the first time, and many other needs here in Denton County. Make a donation >
Other Tips
Please be aware of possible scams. You may receive unsolicited mail, emails, calls, texts, or social media messages asking for your SSN, bank account, or credit card information, or suggest that you can get a faster payment if they fill out information on your behalf. Please also be on the lookout for a bogus check, perhaps in an odd amount, that asks you to call a number or verify information online in order to cash that check.
To avoid late fees and other penalties, remember to pay at least the minimum payment by the due date for all credit cards and bills.
Check out our Covid-19 Resources page for more tips and pertinent information.