During the worst pandemic, federal stimulus funds helped millions of Americans stay afloat financially. Some people’s payments also allowed them to start investing.
According to a recent survey, 2 in 5 people who received stimulus checks used the money for several purposes. According to 2021 Financial Capability Study from the FINRA Investor Education Foundation, a nonprofit organization devoted to financial education and empowerment, 47% of Black and Hispanic Americans used the payments in more than one method, as opposed to 32% of white individuals.
The investigation, which polled over 26,000 Americans who received stimulus cash from June to October 2021, found that Black and Hispanic Americans in the 18–40 age range were more likely than white respondents in the same age range to invest some of the funds in the stock market.
Stimulus Check Made Most American Households Stable:
According to FINRA’s assessment, stimulus checks supported household budgets and helped explain some of the financial resiliency seen in 2021.
The IRS distributed merrier than 169 million payments to households nationwide in the third and final round of stimulus checks last year, with the average household receiving $1,400. The financial competency study by FINRA found that Americans utilized the money for what it was designed for.
More than 78% of individuals polled said they had received a minimum of one stimulus payment connected to the pandemic. According to the analysis, 59% of respondents utilized the money to make purchases or pay bills, which is in line with the objectives of the American Rescue Plan. Another 38% put the money in their savings, and 33% paid off the debt.
Some stimulus funds were invested in the stock market, and younger persons of color with college degrees and higher incomes were most likely to do so.
It was shown that persons between 18 and 40 spent more of their stimulus in the stock market than any other age group.