Bailout checks instantly reduce the financial pressure on people, but the way they are used varies by age; most adults use them to pay off loans and save.
According to the US Census Bureau, 54 percent of young adults between the ages of 25 and 39 used their bailout checks to pay off loans and 26 percent to save; 57 percent of people between the ages of 40 and 54 paid off loans and 22 percent saved.
Cameron Turner, a 23-year-old California resident, said, “If you can’t anticipate what’s going to happen in the next few months, you have no incentive or motivation to take a check and spend it. Mrs. Turner, who is still unemployed, decided to deposit her check into an emergency fund account.
According to the Bureau of Labor Statistics, 779,000 people applied for unemployment benefits last week, and the current unemployment rate is about 6.3%, causing many people to remain uneasy about their financial situation.
MIT School of Management professor Jonathan Parker said: “The reason why people lose spending power can be divided into many faces, those who often go to restaurants, play around, spend a lot of money in bars disappeared. Now in addition to the subscription to audio and video streaming entertainment services, people will not spend too much money.
According to statistics from June last year, nearly 60% of the population got a check to use for everyday expenses, and paying for loans was second place about 13%. So that credit scores improve, credit card debt is the first Time in eight years to reduce. The credit reporting company also pointed out that consumer card debt decreased by 20 percent in 2020, and card debt for young millennials, also 11 percent less. In addition, the data also shows that consumers used fewer credit cards and defaulted on debt during the Epidemic.
Kate Sumser, who lives in San Francisco and is pursuing a law degree, spent her first check on rent, household items and bills. Her Parents, who live with her, were barely able to get by on her student loans.
When they received the second bailout check, they immediately used it to pay their credit card bills, she said, “Ideally, I’d like to save it, but I really don’t have a choice. Sanser expects a new round of relief packages, but she is prepared to accumulate more and more debt until the epidemic is under control.
The epidemic has changed the overall consumer climate, causing people to save more and more, and the Federal Reserve Bank of New York analyzed that consumers put more than a third of their first relief check into savings.
The majority of adults used the bailout checks to pay off loans and savings, including cars.
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