Updated: January 21, 2022 11:19 AM
Created: January 20, 2022 10:20 PM
With Governor Walz proposing Minnesotan’s receive checks from the projected surplus, many wonder how this will affect the economy.
Financial Advisor Barry Bigelow from Great Waters Financial says, "When it's an amount that people will spend immediately then it will give a direct impact."
About $350 would go to couples and $175 would go to single taxpayers which Bigelow suggests would be spent on immediate needs.
He says, “They are going to use that money directly for whatever is hurting them the most and so it does usually go back into the economy."
The only way it won't boost the Minnesota economy is if you shop at businesses like amazon or companies from outside the state.
RELATED STORY: Walz proposes checks up to $350 as part of economic package
Barry says, “But if you go out to eat with that money or if you buy groceries with that money that is supporting local employers and employees. So the more money that you spend locally of this check then the better your local economy is going to do."
Some Minnesotan’s are thinking of spending the check on bills, groceries, or other necessities. While others are spending it on clothes, traveling, or a night out.
But if you are saving the money for a long-term purchase Barry Bigelow says it won’t drastically hurt the economy.
He says, “This is in a sense a tax return, and so if you are looking at filing your taxes and you are going ‘gosh I could pay for a trip with this money, I could put a down payment on my car with this money, or I could put this in retirement by putting it in a Roth IRA or a traditional IRA then that's a perfectly fine was of using the money."
Copyright 2022 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved