Where does stimulus aid go? Where does stimulus aid go? http://www.federatedinvestors.com/static/images/fhi/fed-hermes-logo-amp.png http://www.federatedinvestors.com/daf\images\insights\infographic\piggy-bank-business-people-small.jpg February 5 2021 February 3 2021

Where does stimulus aid go?

To necessities for some; to savings for others.

Published February 3 2021
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Infographic published January 29, 2021. Title: Stimulus aid Stimulus aid. Most consumers plan to save their second Covid-19 stimulus payments for now. How will consumers use their stimulus checks? 60 percent of high income consumers (over $100 thousand), 45 percent of middle income consumers ($50 thousand to $100 thousand) and 33 percent of low income consumers (under $50 thousand) will save it. 5 percent of high income consumers, 12 percent of middle income consumers and 25 percent of low income consumers will spend it on rent. 20 percent of high income consumers, 20 percent of middle income consumers and 30 percent of low income consumers will pay for food. 19 percent of high income consumers, 25 percent of middle income consumers and 27 percent of low income consumers will pay back debt. 7 percent of high income consumers, 5 percent of middle income consumers and 3 percent of low income consumers will make large purchases for home. Who gets a stimulus check? Single tax filers with no dependents earning less than $87,000 per year. Married, joint filers earning less than $174,000 per year. When will economic activity pick back up? Get ready for the most synchronized global economic recovery in history to begin by midyear. With widespread vaccination anticipated by midyear, consumers will be ready for a long-awaited splurge. Around the same time, the cumulative impact of the largest-ever trailing 12-month buildup of fiscal and monetary stimulus will likely hit the global economy. Information sources for this graphic included: Morning Consult, December 2020; IRS, December 2020; Federated Hermes, January 2021.