5 Ways American Spending Has Changed Since the First Stimulus Check
Written by
Tobi Opeyemi Amure
Edited by
Jenna Klaverweiden
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Remember the rush of checking your bank account in the spring of 2020 to find additional money in there? For millions of Americans, those first stimulus payments arrived like financial life rafts — $1,200 deposits that sparked both relief and uncertainty.
Five years later, those stimulus checks may seem like a distant memory. However, we may still be experiencing their impacts. Here are some ways those stimulus checks were spent and how spending has changed since.
Also see three hidden stimulus programs most people don’t know about.
Initial Increase in Savings and Debt Repayment
Ben Loughery, lead financial planner at Lock Wealth Management, said that people saw a chance to get rid of high-interest debt.
When stimulus checks came in 2020, according to the National Bureau of Economic Research, about 20% of recipients used most of their check on reducing debt.
However, inflation, as well as depleted savings, provided some headwinds. In late 2024, the total household debt reached $18.04 trillion, and credit card debt was a staggering $1.21 trillion, according to the Federal Reserve.
This could be indicative of a return to pre-pandemic spending behaviors or a changing economic landscape with higher prices.
Sustained Growth in Online Shopping
Consumers turned to online platforms to meet their shopping needs during lockdowns due to the pandemic. This trend has continued, and many Americans still prefer online shopping because it is convenient.
In fact, according to the U.S. Census Bureau, total e-commerce sales in 2024 were 8.1% higher than in 2023. Plus, in 2024, e-commerce sales made up 16.1% of total sales. That’s higher than 2020’s 14% and 2019’s 11%, indicating a growing shift to online consumerism during the pandemic that has stuck around,
Increased Preference for Digital Payments
Stimulus checks gave a crash course in digital finance, with an increased need to transact digitally. The U.S. Department of the Treasury stated that the first batch of recipients for the third stimulus check were those who had direct deposit information on their tax forms.
According to American Banker, PayPal lobbied the Treasury Department to allow consumers to receive their stimulus checks through the platform. As a result, PayPal saw 7.4 million net new accounts added in April 2020.
A recent report from Deloitte perfectly highlights this sustained shift in consumer preferences. The report indicates that people are opting for digital payment options like credit cards and peer-to-peer (P2P) transactions compared with regular checks and cash. And according to The Business Research Company, the digital wallet market is expected to grow at a compound annual growth rate of 19.8% from 2024 to 2025.
Enduring Shift in Food Delivery Spending Habits
Stimulus checks potentially aided in making food delivery a core spending habit for many recipients. A National Institutes of Health study on COVID-19 relief showed that stimulus checks were associated with more eating out, with households allocating 9% more to food away from home after the COVID-19 relief payments were issued.
According to data from the U.S. Department of Agriculture, third-party delivery for quick-service restaurants more than tripled, with the period from December 2019 to February 2020 seeing just $0.4 billion spent, while the period from October to December 2022 saw $1.4 billion in spending. At restaurants that provide the same services, delivery spending more than quadrupled.
This trend continues post-pandemic, as more Americans prioritize convenience. According to September 2024 data reported by Purdue University, about two-thirds of consumers ordered food for delivery or takeout using apps. And among the two-thirds who have used one of these apps to order food, half reported using them at least once a week for delivery or takeout.
Plus, about half of U.S. consumers look to a third-party platform to help them choose the best restaurant to order delivery or takeout, according to DoorDash.
Increased Investment Activity Among Younger Demographics
Stimulus payments also spurred a surge in individual investments, particularly among younger demographics. CNBC reported that half of young investors put their stimulus money into the stock market or explored cryptocurrencies.
“Younger professionals, especially in urban areas, were more likely to invest their stimulus funds in stocks, crypto or tech gadgets, a behavior that has carried forward,” Loughery said.
This heightened interest in personal investing has continued, with a significant portion of Americans — especially younger Americans — actively participating in financial markets. According to the World Economic Forum, 70% of retail investors in the U.S. are under age 45.
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