I have argued that the last thing someone should spend their economic stimulus rebate check on is monthly bills, because your income should cover your monthly expenses. If you need a one-time bonus to cover the bills, something’s out of whack. Instead of using the stimulus as a bandaid, you need to address the underlying problem and cut your spending – and get your inflow equal to your outgo.
Here’s the one exception: Buy groceries. Why? Because you may get an instant 10 percent return on your money. My local grocery store, Shop-Rite, is one of a dozen retailers that are offering a 10 percent bonus to people who use their stimulus checks to buy the store’s gift cards (which work exactly the same as cash).
So, for example, if you get a $300 stimulus check and bring it to the store, they’ll give you a gift card worth $330; for a $600 check, you get a card worth $660; for a $1,200 check, a card worth $1,320. In other words, up to $120 in free groceries. I can’t get an instant 10 percent return in a savings account, and I have to buy groceries anyway.
Shop-Rite is allowing customers to do a partial purchase and receive the balance in cash – so you can bring in a $900 stimulus check, buy a $300 gift card (worth $330) and they’ll give you $600 in cash back. Even people who have their stimulus checks direct-deposited are eligible; they just have to bring in copy of their bank statement with proof of direct deposit. The offer ends August 2.
Kroger, one of the first to announce the bonus, is offering the 10 percent deal on gift cards to all customers – so you don’t actually bring in your rebate check. You do have to bring your checks to Supervalu, which owns Acme, Albertsons, Bigg’s, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Shaw’s/Star Market, Shop ‘n Save and Shoppers Food & Pharmacy, to get their bonus, through July 31. TOP Food and Drug and Haggen Food in Seattle are offering a 15 percent bonus on their gift cards.
Sears is offering a similar incentive for its Sears, Kmart and Land’s End stores, and online at sears.com and landsend.com. But you need to convert the entire amount of your rebate to a gift card to get the 10 percent bonus.If you do take advantage of one of these programs, make sure the gift card you purchase does not expire. Check out this clip from Better TV for more ideas on what to do with your rebate check.
