Coloradans Urged To Be Mindful When Spending Their Coronavirus Stimulus Money

DENVER (CBS4) - About 80 million Americans have received their stimulus checks via direct deposit so far. The payments are intended to help those facing financial hardship due to the coronavirus pandemic.

Meanwhile, the Americans who haven't lost their jobs are figuring out the best way to spend the cash that appeared in their accounts overnight.

CBS4 spoke to several Coloradans about their stimulus check spending plans.

Some residents plan to save, invest, pay bills, or use the check to splurge on themselves. The majority say they plan to put much of the cash back into the economy by supporting local businesses, but experts say be careful how much you spend.

"This is not the time to spend on luxuries, not that there are many places to go spend it at right now. The purpose of this money is to keep families fed, keep a roof over their heads and keep the lights on," said Dr. Jack Strauss, Miller Chair of Applied Economics at the University of Denver.

For those who aren't relying on their checks to meet immediate financial needs, Strauss says the stimulus payments are best used to improve personal finances.

"Make payments on your credit cards that have high interest rates and improve your credit down the road," said Strauss. "Pay off debts you may have."

Many Americans are still hoping to donate or help boost local economies by spending, and Strauss says that's fine. However, that doesn't mean you need to spend the entire check right away.

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"We don't know how long this will last. If you still have a job, certainly take some to support local charities, food banks and going out to pick up from local restaurants," said Strauss.

If you can afford to hold on to the cash, Strauss says the best place to put the money is in a savings account.

"Most people do not have an emergency savings fund in case there's a bad time, and certainly, this is a bad time," said Strauss.

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