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J. Keith Baker is a certified financial planner.

​Contact: Debra Dennis
ddennis@dcccd.edu; 214-536-7468

For immediate release — April 15, 2020

(DALLAS) — A $2 trillion stimulus package approved last month by Congress means millions of workers will receive direct deposits over the next few weeks. That money is designed to cover expenses like rent or mortgage, provide food and pay for transportation costs.

But how should families proceed? How should you use these funds wisely in a time of uncertainty?

“Most families will need to use their checks to keep food on the table and maintain a roof over their heads,” said J. Keith Baker, program coordinator for mortgage banking and financial services at North Lake College.

Families that receive the $1,200 for adults and $500 for children and are not immediately needing these funds for food, clothes or housing, however, should consider the following options:

If your employment seems very stable:

  • Pay down highest interest-bearing credit card debt.
  • Build up your emergency fund.
  • Contribute to your traditional IRA or 2019 Roth IRA since the deadline for those contributions has been extended to July 15, by which time you will know how COVID-19 affects your finances.
  • Support local businesses that are hurting by buying gift cards you could use later for food or services and help your business neighbors.

If your employment seems insecure:

  • If you lease an apartment or home and are near your lease expiration date, consider a lower-cost option, making sure it will not disrupt your family’s school situation or commute.
  • Look for other employment options, even if they are part-time, in order to offset fewer overtime hours and/or job loss.
  • Delay any planned nonessential purchases that might severely deplete your emergency fund, raise your monthly expenses or require new cash outlays.

If your employment has ended:

Create a new budget to see how long your government aid and emergency funds will last when only paying for essentials like:

  • Food
  • Housing mortgage payments/rent
  • Required transportation
  • Drug prescriptions, etc.

There are a lot of good free or near-free budget applications, such as Mint, PocketGuard, Goodbudget and others, according to Baker. In a dual-income family, if one spouse loses their job, preparing a budget for the reduced income is still a necessity.

“Start thinking out of the box,” said Baker, a certified financial planner for 38 years.

For a child’s upcoming birthday, plan a virtual party. “Send out Evites and use social media for the party to save on spending without looking bad to your child,” he said.

Other tips:

  • Cook and prepare meals at home using easily obtainable items. Buy chicken legs when they are on sale in bulk. Several grocers will deliver them if you cannot get out. Use some meat and freeze the rest for later.
  • Rice and a can of chicken mushroom soup mixed with the chicken and served over the rice can be inexpensive and a good-tasting meal.
  • Leftover chicken can be used to make soup, chicken salad sandwiches, chicken alfredo — all of which have inexpensive and wholesome additional ingredients.
  • Some grocers have specials on meats every week, usually more than you need for one meal.

“Use these savings and your freezer wisely, and you might not have to live on cheap noodles all the time,” Baker said.

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