How to Spend Your Stimulus Check

I've heard a lot of talk about the Coronavirus stimulus check.  The Treasury Department says that 80 million Americans should be receiving their payments via direct deposit by April 15. A lot of people are anticipating the arrival of their $1200 stimulus checks, but what should you spend your check on? If you don't have a plan for your stimulus check, here are a few things that I would recommend.

how to spend your stimulus check

 How to Spend Your Stimulus Check

responsible ways to spend your government covid check

1. Spend it on Necessities

If you have been living off of credit cards, don't dive deeper into debt. Use this stimulus check to help cover some of those necessities your family may have.

2. Save it

If you don't have an emergency fund set up, this period of time should be that kick in the pants to prove to you why you need one. Set up a savings account and start putting away money starting with the stimulus check. 

If you are currently employed, great, set aside some cash in savings account from your paycheck every month. If there is any lesson to be learned, it's that uncertainty can knock at any of our doors at any time. 

Want to start saving money? Here are 10 things to cut from your budget.

coronavirus stimulus check

3. Give

I started listening to the Dave Ramsey podcast a few months ago, and his one line is "live like no one else, so you can live and give like no one else." We are frugal folks, always have been, and this rings true for our family. 

If you have positioned yourself financially in preparation for the unexpected {though I must confess, this crisis is far more unexpected than anyone could imagine!}, then you will be in a place that you can give generously to help those around you. 

Here are some places I'd recommend giving during this crisis:

World Vision

I've seen the work on the ground, and with a strong global reputation, they have had boots ready and working since this crisis began. Known more for their international work, they also have a strong presence in the States and have been helping distribute food, supplies, and PPE. 

Local Church

People are recognizing that the church isn't just operating inside the four walls of a building, but instead are having a direct response in their community. Many local organizations reach out to the church to ask for help, so reach out to your local church, or one in your neighborhood to see how you can help.

Local Small Business

Local small businesses are the most affected right now. Purchase a gift card or order from their online website, and order from a small local restaurant instead of a chain. Leave a review, it won't cost you anything, and once business is up and running again, those reviews will be like gold for a small business.

4. Set it Aside

I'm hopeful that life as we know it will get back to normal soon. If you don't need the money to help you provide for life in your four walls, then consider setting it aside for some fun money once the economy bounces back. 

I have a feeling that travel will be on sale for quite some time and that will be an industry that will need some help bouncing back as it's been one of the hardest hit. If you always wanted to do some home improvements, set aside some cash now to help you get a jump on those. Maybe you've got an appliance that's on its last leg, set aside some cash so you can replace it when this is all over. 

5. Invest

If you have the means to do so, the stock market is on major sale right now. Consider investing in the stock market or putting money in mutual funds. If you have the money, do your research and consider investing while the market is at a low point.

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responsible ways to spend your government covid check

What NOT to do With Your Government Stimulus Check

Don't be impulsive! This crisis isn't over, and the uncertainty still lingers. Rationalizing that you will be using that new TV during quarantine won't put food on the table in a few months if you are struggling. 

Want to know the real cost of impulse buys? Here are 7 ways to stop overspending!

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