SAN ANGELO, Texas — Over the next couple of weeks, Americans will be receiving stimulus checks approved by congress. We spoke to a local financial adviser about the do’s and don’ts of getting a stimulus check.
“That’s what’s happening, money is going into the economy because people are potentially not going to have earnings so they want to keep the economy moving forward,” said Scott Fanatico, Owner of The Financial Services Center.
The U.S. government has approved $2 trillion dollars in a stimulus bill for Coronavirus relief. Americans will be receiving the $600 billion dollars in the form of checks to be sent within the next couple of weeks. According to financial consultant Scott Fanatico, if you are receiving a check you should use that money wisely.
“Me as a planner, the first thing I’m going to tell my clients is if they’ve incurred debt, I want them to use those monies against that debt. Whether there’s interest being charged or not, I want them to take their debt down first,” explained Fanatico.
Fanatico said if you’ve exhausted your emergency funds or don’t have a savings account, now is the time to open one.
“There’s always that need of a speed bump to tuck a little bit of money away for periods like this where there’s interruptions. You should always have a rainy day fund because the first place we will go to is a credit card and then you pay a lot of interest for that loan you’ve incurred,” suggested Fanatico.
Those who have no debt and have money saved for rainy days might consider investing the money or donating to charity.
According to Fanatico, individuals who have lost their jobs due to the pandemic should look at their needs to decide how to spend the checks.
“It’s the priority of work. They need to take care of the hierarchy of needs. ‘Do I have shelter, food and monies for my healthcare?’ That would be the first line of usage for someone who lost their job,” continued Fanatico.
Regardless of how the money is spent, Fanatico said the dollars received won’t have to be paid back.
“It’s more of a tax credit, so it won’t be deducted from your tax return. It’s going to be dollars you’re not going to be penalized for,” added Fanatico.