Eating our stimulus payment
Posted on July 7th, 2008 – 12:00 PMBy Kara McGuire
The check came right on schedule. Visions of flat screen TVs, video games and a day at the spa came with it. But I dutifully headed to Cub Foods and turned $1200 into two $660 gift cards — the maximum amount the company allows. It’s a strategy I explained in this earlier post.
Like many Americans, the other $600 from our check will go towards paying off a credit card balance. June was an expensive month, with some eating out, some reunion expenses and the purchase of a new patio set. Hence, the tracking spending exercise I started mid-June.
I must admit that exercise has fallen by the wayside of late. I did do a quick and dirty assessment, though, and our credit card transactions showed we’re spending about $15 more in gas than we budgeted and that we ate our entire fun budget for the month.
6 Responses to "Eating our stimulus payment"
Kara,
If you’ve got 10k lying around (three posts back), why would you have acredit card debt?
Are you a financial planner?
Do your CC debts exceed 10K.
we’re planning on the same thing once we finally get ours, except that after our $1200 the other $300 goes into savings. Since I just dropped an ungodly sum this weekend stocking up on formula, diapers and wipes for the next two months, these grocery cards might actually last us a significant amount.
And then our grocery money goes straight in savings. How boring is that?
That is, if we ever get our check. we’re the last to get ours.
Phil, I’m glad you asked. I should clarify.
I don’t have a credit card debt for which I pay interest. But I wouldn’t have enough in checking to pay for my current bill without dipping into savings if it weren’t for this $600.
Then again, the rate on this card is 0 percent until September…but since my free ride is ending, I don’t want to add to my balance.
Whether to take advantage of the zero percent on all purchases and balance transfers for 15 months with no balance transfer fee credit offer we received in mail is for another post 
This is why the stimulus is a joke: Cub Coupons merely shift the payment to Cub - I doubt there is a lot of net new consumption going on with Cub shoppers.
A true stimulus would boost consumption of capital goods - not merely shift consumption of consumables.
I prefer to call it an intergenerational wealth transfer: my kids are paying later for other’s consumption now…
Good point, David. In fact, Matt and I just spoke last night about how we should put the remaining $600 in accounts for our kids.
we put the $600 “kids” portion of our check into their mutual fund accounts. We figured we didn’t need the cash, but THEY might 20 years from now!
