With a second round of coronavirus relief stimulus hitting bank accounts and mailboxes this month, new survey data show how Americans expect to spend these $600 checks. Most say they’ll use the money to pay household bills.
With a second round of coronavirus relief stimulus hitting bank accounts and mailboxes this month, new survey data show how Americans expect to spend these $600 checks.
According to bill pay service doxo, more than half of the survey respondents (53%) believed they will receive a stimulus check, with 37% unsure. Not surprisingly, the vast majority (90%) believe the cash infusion will improve their financial health.
When asked how they plan to use the funds – which amount to $600 per adult or dependent child for income-eligible households – almost 6 in 10 (59%) reported they would pay household bills with the funds.
In a distant second were using the money to keep their family fed or putting it in savings, both at 11%, followed closely by paying credit card bills, reported by 10% of respondents.
See related: When to pay your credit card billAmong those who indicated they would target household expenses, utility bills were the run-away first choice, cited by more than three-quarters of the adults (78%). After utilities, similar proportions of the respondents said they would cover cable and internet bills (35%), rent (33%), their mortgage (32%) or cell phone bills (32%).
Based on its aggregate data from millions of consumers’ monthly bills, doxo reports that the average household spends $290 per month on utilities, meaning a $600 stimulus check will only last a couple of months in covering these bills.
Though 41% of survey respondents said they think it will take the overall economy more than a year to recover, 68% indicated it would take that long or longer for their own financial health to be back on track.
A separate study conducted by the Federal Reserve last August showed 45% of Americans would save a second stimulus check, and 31% said they’d use it to pay down debt.
The findings from doxo were drawn from both aggregate bill payment data from over 4 million consumers from all 3,007 U.S. counties and a survey conducted in December among 1,078 U.S. adults. The results were released Jan. 7.