President Joe Biden signed the American Rescue Plan into law and with it comes another stimulus check for most Americans.
“The hope that anytime the government sends out cash to someone that they will spend it,” Joel Johnson, a certified financial planner with Johnson Brunetti, said.
To be eligible for the full $1,400, individuals must have an adjusted gross income below $75,000. Married couples filing jointly must have an AGI under $150,000 to receive the full $2,800.
“The government wants you to instantly spend the money, again, to get the economy going,” Johnson said.
But he said Connecticut residents should be making a plan.
“If you have debt, pay down debt. If you don’t have an emergency fund hold onto it so that you have an emergency fund,” Johnson advised.
Bruce Adams, president and CEO of the Credit Union League of Connecticut, said there’s a lot of money for a lot of things in the American Rescue Plan.
“But to the average American what matters is the number that’s in their bank account,” Adams said.
Adams also said the first thing people should be thinking about is making a plan.
“Think about what money you have coming in now, think about what you have saved, think about what you have to spend on,” Adams said.
Johnson said if you have the means and don’t need the money to pay down debt then he recommends helping out the local economy by spending it at restaurants.
“The industry that has been hurt the most is the hospitality industry, restaurants, and hotels,” Johnson said.
Adams urges people to spend their money locally.
“Keeping your dollars local is the best way to improve your circumstances along with your neighbors,” Adams said.