New Poll Reveals 7% of Americans Plan to Invest Their Stimulus Checks in Cryptocurrencies
Of the 17% who plan to invest money from the new stimulus check, 41% plan to invest in cryptocurrencies, primarily belonging to the 25-40 age group.
A new poll reveals that Americans plan to spend the latest round of stimulus checks on non-essentials, stocks, and cryptos.
The Harris Poll was conducted online within the United States on behalf of Yahoo Finance during March 12-15, 2021, among 1,052 U.S. adults ages 18 and older. Two-thirds (67%) of Americans said they expect to receive a stimulus payment from the pandemic relief bill passed by Congress this month.
According to the Poll results, 7% of Americans plan to invest in cryptocurrency, the same as the last time, while non-crypto investments such as stocks, bonds, and commodities, have seen a slight jump to 10%.
62% of the respondents said they feel they need the money to be able to cover the cost of necessities like household bills, groceries, and medicine.
Last time about 15% of Americans who received the previous two stimulus checks invested part or all of the money and a half for this growth, specifically in cryptos.
According to the poll, most Americans, 52%, reported that their household finances remain currently unchanged compared to before the pandemic. As a matter of fact, one in five are reporting improvements.
Still, 29% of Americans reported that their household finances have worsened because of the pandemic.
This could be why 15% of respondents invested part of or all of their extra funds, after spending on necessities (43%), putting it in savings (36%), or paying down debt (32%), from stimulus payment issued in March 2020, with 7% investing only in crypto.
Higher Income Households More Invested
Americans are showing an uptick in the willingness to spend some or all of their stimulus checks on non-essentials, such as entertainment and electronics — currently 16%, up from 13% of the second stimulus check, and 10% the first time.
Spending is not the sole focus as people see themselves in need, and a large plurality plan to put at least some of the money into their savings (40%) or invest the funds (17%). Of those who plan to invest money from the new stimulus check, 41% plan to invest in cryptocurrencies.
“With stimulus check investment in cryptocurrencies remaining so stable throughout the pandemic, with general investments increasing overall, and with more Americans putting stimulus money into their savings, it appears Americans are looking for safe havens for their extra cash and experimenting with increasing their holdings if possible,” it noted.
This is particularly true of those in higher-income households as compared to just 3% of individuals in households making less than $50,000/year, 10% of individuals in households making more than $100,000/year invested in cryptocurrencies using the first stimulus check.
Slightly more (13%) did the same with the second stimulus check, and 14% plan to do the same if they receive the next stimulus check. Those in high annual income households have also increased their overall investing with stimulus checks compared to their lower-income counterparts.