Still holding on to your stimulus check? Here’s what to do

If you’re still holding onto your pandemic stimulus check, you may not be alone. Many Americans used their checks years ago, but some might have saved them for various reasons. If you find yourself unsure about how to use the funds, here are a few ideas to consider.

Before making any major financial decisions, take a close look at your credit card statements. If you have high-interest credit card debt or loans, using your stimulus funds to pay those off could be a good move. “Those high interest rates are eating into your budget,” said Arron Bennett, Chief Financial Officer at Bennett Financials.

Once your debts are in check, it may be time to start saving. “One simple option is to park the money in a high-yield savings account,” advised Thomas J. Brock, CFA, CPA, financial expert at Annuity.org. Some of the top accounts are offering interest rates around 4.75% annually, which is expected to remain steady for the foreseeable future.

For a longer-term strategy, think about investing in your retirement. Bennett suggests contributing to a tax-advantaged retirement account like an IRA or 401(k). Even with market uncertainty in 2025, investing in a diversified portfolio of stocks, bonds, or index funds has historically been a good way to build wealth over time.

Considering a career change or working on a side hustle? Your stimulus funds could be your key to unlocking new opportunities. “Investing in yourself or your business now can lead to long-term rewards,” Bennett explained. This could involve taking courses to improve your skills, upgrading your equipment, or enhancing your business’s marketing.

Finally, don’t forget about Uncle Sam. Before making any major decisions with your stimulus funds, Bennett recommends consulting a tax professional. There are many advanced tax strategies, such as health savings accounts or 529 plans, that could help you grow your money while minimizing taxes.

By considering these options, you can make your stimulus check work for you, whether it’s paying off debt, saving for the future, or investing in yourself.

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