The government will be sending financial relief checks to millions of Americans. If you’re expecting to receive this relief, we want to help you with some ideas on how to manage that money.

Establish a plan and take care of your immediate needs

Before you spend any of the money, you need to make a plan and budget. Make sure you have food, rent, bills and any other necessities. These should be your biggest priority and are what many will be using the money for. Once your basic necessities are taken care of, you can allocate money to other things.

Pay off debt

This is a perfect time to pay off high interest credit cards or loans that are racking up your extra funds each month. The average American has $8,000 of credit card debt with an APR around 22%. Once you pay this off, or pay a portion of it, you will have more money for necessities when you’re not paying that high interest fee. If your debt is paid off and you have the ability to save this or put it into an interest-earning checking, savings, or money market account, you could get ahead on your savings goals. Whatever you decide to do, make sure you make a smart financial decision.

Add to or start an emergency fund

A good rule to follow is to have 6 months of expenses saved for. This fund should be easy to access and pull from when needed. For many people, this fund could be in use right now with times being as challenging as they are. For others, this would be a great time to add to it and to create an extra buffer for when things aren’t going as planned. The Coronavirus is a perfect example as to why this emergency fund is so important to have.

Help the community

If you’re fortunate enough and willing to, the community could use your help. There are many people that are struggling to buy supplies and stay afloat. Consider donating to trusted sources such as the World Health Organization, the American Red Cross, and various other nonprofits. You can also check with your local government to see if there are any nonprofits that are directly assisting your community.

We're in this together!

Everyone will have a different plan as to how they are going to use the relief deposits. Figure out what works best for your situation but make sure you stick to a budget. Along with being financially responsible, we need to remain positive and support our community. We are all in this together and will get come out of this stronger than ever!