Financial incentive for young Americans

Last April, Joe Biden signed a new $1.8 billion investment proposal for spending on education, child care, paid family leave, as well as other tax credits and incentives to help American families. On July 15, the first checks began to be delivered.

The 80% of U.S. families will start receiving a check for each child, representing more than 88% of children nationwide. By 2020, the economic incentive per child on income was up to USD 2,000 for children under 17 and could be partially refundable (monthly payments).

For this 2021, the credit is USD 3,000 per child under 18 years old or USD 3,600 for children under 6 years old. The economic incentive is intended to support low and middle income taxpayers; it is gradually eliminated for high income families.

For the time being, the new amount of this benefit is exclusively for the year 2021. It is not excluded that by means of a new law it may be extended for some more years.

What does this mean? | Financial incentive

This new economic boost represents more money for consumers and many companies will benefit. What do people do when they receive this kind of help from the government? Surely many will save a portion, another portion will be used for purchases related to the start of school and another percentage will be used for recreation.