Did the Stimulus Checks Help People with Unexpected Expenses?

The brief’s key findings are:

• Before COVID-19, many households said they would have trouble paying a $400 unexpected expense.
• The question is how COVID, with its mix of job losses and stimulus checks, has affected households’ financial well-being.
• While the final impact of the three stimulus payments will not be known for several years, preliminary data suggest that:
  • • the first check served as a lifeline to cover essential bills; and
    • the second and third checks helped many, even those who lost their jobs, build up savings or pay off debt.
• What remains unclear is how long these favorable balance sheet effects will last.