-Financial advisor three-step plan for people receiving stimulus funds below-
BAKERSFIELD, Calif. (KGET) — People living in Kern County could have their bank accounts increase as another round of stimulus checks is issued.
Theses extra funds are part of the California stimulus package. People who earn less then $75,000 a year will get a one-time payment of $600 to $1,100.
The extra funds brought by the stimulus package are meant to boost the economy. Meaning, the money is intended to be spent.
“The economy is defined by people spending money,” Sherod Waite, the CEO of MoneyWise, said. “When people receive money when any individual receives money especially if they are at the lower end of the economic scale that has a really big impact on the economy because those are the people that take the checks and immediately put it back into the economy.”
Waite explains saving money might be the right call for some people but saving it or paying bills won’t immediately stimulate the economy.
“If everyone received extra money and didn’t do anything with it it wouldn’t have an effect on the economy,” Waite said. “It’s when people start spending it and buying services that the economy is stimulated.”
Many Bakersfield locals what they would do with the stimulus money and all of them said they would either spend it on an ongoing personal projects, bills or the essentials, like food.
“I would buy baby supplies because I have an eight month old son and I whatever is left over I would buy some power bait for fishing,” Angel Ybarra, a local father, said.
“Last stimulus we put it towards our new bathroom,” Mark Umbinetti, a local homeowner, said. “Something we normally wouldn’t do. So something special.”
“Most likely I will use it for car repairs because that’s my need right now,” Ernesto Garcia said. “Otherwise I will try to keep it in my checking account as much as I can.”
Payments have already started to land in bank accounts through direct deposit, but if you’re getting a paper check you should receive yours before Thanksgiving.
The money goes to the address on file and the information is based on tax returns.
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-Three-step financial advice from MoneyWise CEO for people receiving stimulus funds-
Waite said there are steps people should follow after getting unexpected money like from a birthday or the stimulus.
“When you get new money that’s unexpected that’s maybe a gift or the stimulus check,” Waite said. “The first thing, bad debt. Pay off the bad debt. Maybe you owe your uncle some money, your neighbor or credit card company. Pay off your bad debt.”
“Secondly, you got to make sure you’re needs are taken care of.,” he added. “So that would be your immediate needs, your electric bill, your house, your food. Make sure you have money set aside.”
“The third step is your longer term need,” Waite said.
Here is a link to the California Franchise Tax Board that has all the information about this next round of stimulus checks.
17 News asked on Monday: What do you plan to do with your stimulus check? Spend it? Save it? Or something else? See the poll results here.