Home Stock Market Americans are using third-party stimulus checks differently from previous payments

Americans are using third-party stimulus checks differently from previous payments


Whether it’s $ 600, $ 1,200, or $ 1,400, Americans have been consistent about how they spend all three of the stimulus tests. But what has changed is that they allocate savings versus spending, according to results released Wednesday by the Federal Reserve.

In the first payout of the economic impact, households spend 29% of their checks for consumption. In the second round, that number dropped to 26% and in the most recent round it dropped to 25%.

That’s based on the New York Fed’s Survey of Consumer Expectations, a representative nationwide, internet-based survey of approximately 1,300 US households.

The survey also found that the average consumer plans to save almost 42% on their third stimulus test, compared with last year when consumers saved 36% on their first stimulus test. their fairies.


In this latest stimulus test, households said they plan to spend an average of 13% on essential goods and 8% on non-essential goods.

In January, households reported using or planning to use an average of 16% of second stimulus funds for essential expenditures and 6% for non-essentials.

In this latest stimulus test, households said they plan to spend an average of 13% on essential goods and 8% on non-essential goods.

Survey findings reflect “high uncertainty over the timing and continued economic impact of the pandemic,” including “high uncertainty about future inflation,” economists at the Fed New York wrote in one post.

That said, consumer confidence, a measure of how consumers feel about the economy, pandemic last month as more Americans get vaccinated against the coronavirus and businesses can reopen with fewer restrictions.

So far, the Internal Revenue Service has distributed 156 million stimulus checks, amounting to $ 372 billion, as part of the $ 1.9 trillion American Rescue Plan, as of Wednesday. That includes about 25 million payments that went to Social Security and VA beneficiaries.

Of the households surveyed by the New York Fed in March, about 32% said they had received their third installment, with an average payout of $ 3,162.

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