The first step is to make a plan for the money. The plan should include what your family needs and your personal situation. Not everyone will have the same needs in these times.

Immediate Needs

The extra money you may be receiving might be coming at the perfect time. If you have been affected by COVID-19 and have lost your job or seen a reduction in your paycheck, use this money to pay for your immediate needs. Buy food and household supplies, and pay essential bills. If you don’t need the money today but know you may need it in a few weeks, save it for your next round of bills.

Another thing you may want to consider is where you are spending the money. Buying local and supporting small businesses in your communities will help the local economy.

Pay Down Debt

You may be lucky and know that you will keep receiving your regular paychecks, so and this money is a bonus for you and your family. If you have debt that is accruing interest, now is the time to get a jump-start on paying it down or off.

Fund Emergency Savings

Now might be the best time to start funding or add to an emergency savings account. Many Americans say they can’t afford a $1,000 unexpected expense. Having some money in a savings account that you can access quickly if needed can help with financial problems in the future.

Financial experts suggest that people have enough money to cover three to six months of expenses. This may seem unattainable to most people. Starting somewhere and having some money set aside for emergencies is better than having none.

Again, every family and household is in a different situation; that’s why this is called “personal finances.” Discuss options with your family members and come up with a plan. This “extra” money you are receiving can be put to good use with a little planning.