Are you among the 130 million taxpayers who will receive a rebate as part of the government’s economic stimulus plan? (Check eligibility requirements here) If so, with the government poised to begin sending checks in May, now would be a good time to decide what you’ll do with the money. Single tax payers will receive up to $600; married couples filing jointly will receive up to $1,200, with another $300 per qualifying child. While the government hopes the money will be spent, MarketWatch reported on a recent survey which found that people plan to use a little over half of any money they receive to pay down debt or build savings.
As you might have guessed, I like the idea of using the money to reduce debts or increase savings. If you have children and have been thinking you’ll get around to saving for their future college expenses some day one day, that day may be right around the corner. Assuming you have an emergency fund and are saving for your later years, check out the options for college savings at SavingForCollege.com. No matter what you plan to save for or which debts you plan to pay down, an important step is to commit to using the money that way before it shows up in your mailbox.