Changes In How We Spent The 2020 Stimulus Check Compared To 2008

Cover Image
By 98.5 KTK

While some Americans are still waiting for their stimulus check, most have already received it.  Now there is analysis on exactly what that check as used for. Looking at the spending and saving habits of more than 1,600 people who received their stimulus check by April 21 in an approximate 6,000-person sample. The researchers found that in the first three days, pending increased between $50 to $75 apiece on expenditures like food and non-durable goods, a category that includes supplies like laundry detergent, pens, paper and other items with a shorter life span. During that same time, the purchase of durable goods increased by $20 in those first three days. This category includes cars, appliances, furniture and others things meant for longer use. On the whole, households spent around one quarter to one third of their stimulus check money within 10 days of receipt. This is very different than the 2008 stimulus, when up to 90% of the rise in durable good spending had to do with auto spending. Given the size of the 2020 stimulus checks, economist expected large impacts on categories like automobile spending, electronics, appliances, and home furnishings. Instead, it seems that individuals are catching up with rent and bill payments as well as engaging in spending on food, personal care, and nondurables.

SOURCE: Market Watch

See and hear more from the 98.5 KTK Morning Show

98.5 KTK Morning Show Podcast