New data has surfaced on the monthly CTC payments which highlights how parents with an annual payment below $50,000 have been using the money. The major display out of it- they have been investing in it.
The monthly payments had, as it has been widely reported, begun in July- and they included a sum of $300 per child under the age of 6 and a sum of $250 for kids under the age of 17. These payments have been a major part of the temporary expanded child tax credit, which was the brainchild of the American Rescue Plan of Joe Biden.
Shift In CTC Payments
Under this legislation, the expanded CTC payments can allow for a payment going upwards of $3,600 per child under the age of 6, along with a payment of $3,000 for children under the ages of 6 through 17. This calls for a payment of around $2000 per child before the legislation.
According to new research conducted by Envestnet- a company for data aggregation which usually works towards providing account aggregation services- there has been close monitoring of how families with an annual income below $50,000 have been dealing with the first two monthly checks.
Although the expanded CTC payments do bring with them several income cutoffs, most families in that range have been deemed eligible for this full amount. Envestnet has found out that most families who have received the payment have been focused on saving or transferring the initial payments in July.
The second payments that were sent in August mostly went to those with securities trades. In order to seek those results, the firm had to go through around 1 million customers at financial institutions that represented a combination of those who received the credit and those who hadn’t.
There is a definite shift from the spending trends of CTC payments back in the summer of 2020 when the stimulus payments managed to drive a spike in discretionary spending. Nowadays, the child tax credit check recipients have been paying their insurance and credit cards with the money.
