Millennials Will Get an Average of $3,370 in Stimulus Money in 2021
by Dana George | Published on Aug. 31, 2021
Here's how much aid you could receive this year from the federal government.
There's nothing like a once-in-a-lifetime global pandemic to reveal how well a country takes care of its citizens. And that includes millennials, born between 1981 and 1994 (or 1996, depending on who you ask). There are over 72 million millennials in the U.S., and many of them are working, building their personal lives, and helping shore up the economy.
To keep this segment of the population chugging along as the economy begins to recover from last year's shutdown, the federal government will provide millennials with an average of $3,370 in stimulus funds this year.
How much money you might receive
Using data from the Institute on Taxation and Economic Policy and the U.S. Bureau of Labor Statistics (BLS), we calculated how much the average millennial is likely to receive. According to the BLS, younger millennials (25 to 34 years old) earn an average of $48,384 annually. Older millennials (35 to 40 years old) make an average of $58,344 per year. Averaging those two amounts, we came up with $53,364 as a typical millennial salary.
This table shows the average total stimulus amounts expected across income groups. It includes direct stimulus payments, the monthly Child Tax Credit, and the Earned Income Credit.
|Income Range||Total Stimulus|
|Up to $21,300||$3,590|
|$601,700 or more||$50|
Your mileage may vary
If you're a millennial, the amount you receive is likely to be different from that of a close friend. That's because the more children someone has, the more they will receive from the expanded Child Tax Credit. In addition, the more a person earns, the less likely they are to get the full credit. In other words, how much stimulus money lands in your bank account in 2021 depends on your specific circumstances.
Is there likely to be more money?
On July 30, Democratic lawmakers proposed legislation that would distribute monthly payments of up to $1,200 per adult and $600 per child, offering a sort of guaranteed income. While the notion of guaranteed income has been bandied around Washington for decades, there is little reason to believe it will become a reality soon. In the meantime, some states are providing more stimulus on their own.
Here are some examples.
- California: Gov. Gavin Newsom signed a budget that includes $12 billion for middle-class families. Nearly two-thirds of residents will qualify for a $600 stimulus check, with some children receiving an additional $500.
- Florida: Florida's Heroes Initiative will provide payments of up to $1,000 for police officers, paramedics, EMTs, and firefighters. Teachers and school principals will also get a $1,000 disaster relief payment.
- New Mexico: More than 4,000 low-income households who didn't get federal pandemic stimulus payments will receive a one-time payment of $750 in emergency financial assistance.
- Tennessee: Full-time teachers will receive $1,000 in hazard pay by the end of the year. Part-time teachers are due a one-time payment of $400.
Hopefully, the pandemic will be behind us soon, and the government won't need to stimulate the economy by sending out more checks. Until that time, take this opportunity to decide how the funds can best be used in your household. Whether that's by paying bills, building an emergency savings account, or paying for car repairs, make the money work for you.
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