To spend or not to spend?
There are no comments for this page [ Add Comment ]Tuesday, May 6, 2008
Ah, those government rebate checks are in the mail or already in our bank accounts. Whether it's $300 or $2,000-plus, the psychological boost is a reality. iPods, DVDs, bills, sofas, designer clothes, bills, Game Boys, car payments, the mortgage, a fishing rod, bills ... all those "essentials," luxuries and necessities are likely in our mind as we contemplate our stash of extra dollars.
But, what are we going to do with this windfall? The government expects us to spend the cash, and thereby pump a short-term, much-needed boost into the faltering economy. The jury's out on what we'll really do.
In Utah, a plurality of residents will use the cash to pay off bills, according to a recent media poll. A quarter of us say we'll stick the money in our savings.
Fewer than 10 percent of Utahns fessed up that they plan to spend the rebate on a "leisure item." In today's economy, it's likely not too popular to admit you're going to take that money and splurge. The crowd's collective cacophony of "Shame on you" rings out. "Take that money and save it for those rainy days," is a popular bit of advice.
Indeed, one Ogden woman who preferred anonymity admitted to a Standard-Examiner reporter that the government cash will either go for a new patio set or a facelift. She explained it's up to her husband. If he'll kick in his rebate share, it's the patio set. If not, it's plastic surgery for her.
The cold fact is, good intentions usually go by the wayside when cash is in the fist. Jason Stoddard, Utah district leader at Key Bank, put it best. "Going into it, they might have good intentions. But once they get a check and see something they want, they'll spend it," he said in an article published in the Standard-Examiner.
It's human nature to want an occasional luxury in life, and if someone can splurge with the rebate without causing personal financial harm, we hope he or she enjoys that iPod, facelift or new backyard set.
In fact, as we see it, the rebates are a win-win. Recipients have a few more dollars to spend or save, and the government gets to pump a little life into the economy if a healthy portion of that cash makes it into cash registers.
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