Spending your stimulus check
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In the next few weeks, most families will receive $1,200 for each adult and an additional $500 per child. Many will use their stimulus payments for everyday things like groceries, electric bills and the everyday essentials, while others may have other options. Here are some helpful tips on smartly using this money:
Most people will see this money direct deposited. Before it’s deposited, now a great time to identify spending habits. Many individuals mentally may have this money spent before it’s deposited. Here are some ways to identify good versus bad spending.
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WAYS TO SPEND YOUR STIMULUS CHECK
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BUILD YOUR CREDIT
Unexpected income can help build credit. Opening a secure credit card for as little as $500 and making payments on-time can help boost your credit score. Watch the video below to understand the components of a credit score. |
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MAKE AN EXTRA MORTGAGE PAYMENT
Making an extra mortgage payment each year could reduce the term of your loan significantly. When making an extra mortgage payment, make sure extra payments are applied to principal, not interest. Otherwise, your extra payment may be applied toward future scheduled monthly payments, which won’t save you any money.
Check out this calculator from Nerdwallet to see how one extra payment a year could help.
*By accessing the Nerdwallet link above, you will be leaving GPO’s website and entering a site not operated by the credit union. Although this is a GPO partner site, we are not responsible for the content.
Making an extra mortgage payment each year could reduce the term of your loan significantly. When making an extra mortgage payment, make sure extra payments are applied to principal, not interest. Otherwise, your extra payment may be applied toward future scheduled monthly payments, which won’t save you any money.
Check out this calculator from Nerdwallet to see how one extra payment a year could help.
*By accessing the Nerdwallet link above, you will be leaving GPO’s website and entering a site not operated by the credit union. Although this is a GPO partner site, we are not responsible for the content.
LOCAL SPENDING
Many local businesses are hurting from the coronavirus impact. You can help put money back into your local community by:
Many local businesses are hurting from the coronavirus impact. You can help put money back into your local community by:
- Making home improvements and use local contractors.
- Dining and going out more than usual.
This is not a spending spree, but a way to help local businesses when you do not have other spending or savings plans.
FRAUDULENT ACTIVITY
With increased traffic at ATM machines lately, criminals may try to cash in on your hard-earned money. In addition to ATM fraud, when money gets tight, check scams and other fraudulent activity tend to increase. Here are some ways to stay protected and be aware of potential fraud:
With increased traffic at ATM machines lately, criminals may try to cash in on your hard-earned money. In addition to ATM fraud, when money gets tight, check scams and other fraudulent activity tend to increase. Here are some ways to stay protected and be aware of potential fraud:
ATM SAFETY
- Use ATMS in daylight or well-lit areas.
- Be aware of your surroundings and know if someone is behind you at the machine.
- Do not share your PIN or card number.
CHECK SAFETY
- Only deposit checks into your bank account from people you know.
- Be cautious of lottery checks and “free money” in the mail.
- Never deposit a check when the sender is asking for money to be sent back to them.
If a transaction seems suspicious, it probably is. Constantly stay up-to-date with online banking and other account tools to help you manage your accounts safely and securely. Contact GPO if you feel a transaction could be fraudulent.
