Congress passed a bill and the president signed it so that this spring, possibly as eary as May, taxpayers will recieve a rebate check ranging from $300-$1200. The government is hoping that these checks will be spent and help boost business and stimulate the economy.
I have read many articles stating polls where people plan on saving thier rebates. One poll suggested that only 15% of people would spend thier rebates while the rest would either save or pay down some bills.
Personally, I believe most people will rush right out and waste thier rebates. Money will be spent! By the end of the year most people will have either new big ticket items such as tv's, or will not know where the money went. Thier savings account balances will not be any higher then they currently are. I am a strong believer in saving and investing. However, I feel most people just don't save. People may have good intentions to save but over the course of the year thier wants will pull that money right out of thier pockets.
With that said, will we be saving our rebate checks? Nope! We are saving up to pay for our October wedding in cash and this money will sure help us do that. Our rebates will be spent on something like catering or photography. We also have plans to buy a house. With the purchase of a house comes a down payment and closing costs. Our rebates will be spent! And I have a feeling so will most of the rest of America! There is a reason Americans are in massive credit card debt! They will continue to spend!