If you’re still holding on to your pandemic stimulus checks, you might not be alone. Many Americans spent that money years ago, but it’s likely that some people held on to it for a variety of reasons. If you’re one of the people who was just unsure of how to use that money, you might want to consider some of these ideas.
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GOBankingRates talked to financial experts about the smartest moves you can make with that money in 2025.
Also see five ways you can create your own “stimulus check” in 2025.
Pay Off Credit Card Debt
Before you dream about investing (or buying something fun), look at your credit card statements.
“If you have any high-interest credit card debt or loans, consider using your stimulus funds to pay those down first,” said Arron Bennett, CEO of Bennett Financials. Why? He explained that those steep interest rates are chipping away at your monthly budget.
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Park It in a High-Yield Account
Got your debt under control? Consider saving the money.
“The easiest thing you can do is invest the money in a high-yield savings account,” said Thomas J. Brock, CFA, CPA, expert financial reviewer at Annuity.org.
Parking your money here could help you earn even more too. “The most competitive accounts are currently yielding around 4.75% annually,” he said. “Rates are not expected to decline notably.”
Boost Your Retirement Savings
Another good bet is to think long term.
“Consider contributing to a tax-advantaged retirement account, like an IRA or 401(k), especially if you’re not maxing out contributions yet,” Bennett said. He pointed out that even with market uncertainty in 2025, “historically, long-term investing in a diversified portfolio of stocks, bonds or index funds has been a reliable way to build wealth.”
Invest In Yourself
Got a side hustle or thinking about a career change? Bennett said this money could be your ticket to growth.
“Using the stimulus funds to invest in personal development or your business can have long-term benefits,” he explained, suggesting things like “taking courses to develop new skills, upgrading software or equipment, or marketing your business more aggressively.”
Get Smart About Taxes
Before you spend that money, think about Uncle Sam too.
“Consider consulting with a tax professional or CFO who specializes in advanced tax strategies,” Bennett said. He mentioned health savings accounts, 529 plans and other accounts that are tax-advantaged, which could help you grow that money while minimizing taxes.
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This article originally appeared on GOBankingRates.com: Still Holding On to Your Pandemic Stimulus Checks? How To Make Them Work for You in 2025
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
