Free money frenzy

LIMA - The check is in the mail, literally. Over the next few weeks, millions of Americans will receive checks courtesy of Uncle Sam's stimulus project. And while the government is hoping we'll spend that money to stimulate the wilting economy, some of us have other plans.
Most Americans will receive between $600 and $1,800, depending on the size of their families and how much they pay in taxes. That means a cool $10 million windfall pouring into the region, a fact that has not escaped area businesses.
"We definitely hope to see them come in. This is the time of year we're starting to see a lot of people come in for car installation, car video, things like that. We're doing what we can to get them to bring those checks to us," said Nate Gast, managing partner at Custom Audio Concepts.

_{What they want you to do.}
Retailers are using a variety of carrots to get those buyers in the door. For Gast, it's an offer of free installation on new purchases and financing deals. Other stores are offering discounts, rebates and layaway deals for those who can't wait for the check.
Some of the biggest deals are through national chains like Sears and Meiers. Cash your stimulus check at Sears and the company will give you a bonus gift card worth 10 percent of that check. The catch is you have to exchange the entire amount for gift cards to be used at Sears, Kmart or a Land's End sometime before July 19. Bring that check to Meijer and the store will provide a $30 coupon for every $300 Meijer gift card purchased, so a $600 gift card will get you $60 in coupons, a $900 gift card will get you $90 and so on.
"This program is designed to add a little more stimulus to the stimulus checks," said Frank Guglielmi, director of public relations for Meijer. "This will allow our customers to increase the buying power of their economic stimulus payments in a unique way."
Frank Jansen is one of those buyers looking for a way to stretch that check. The Wapakoneta man planned to spend his $1,200 stimulus payment on a new high definition television. He's been shopping around while waiting for the check to arrive. Now he knows exactly what he wants, but it will cost closer to $1,700.
"That's how this is really going to work. You get guys like me who plan to spend $1,000 and talk themselves up to $2,000. I'm looking for someone who's going to double my check," Jansen said.

_{What you plan to do}
Jansen might not find someone willing to go quite that far, but the fact that he's willing to spend his check at all is good news for some business owners pessimistic about the plan's chances for success. An Associated Press poll conducted this month found that 59 percent of those surveyed expected to use their rebates to pay bills and reduce debt. Most analysts and business owners expect any stimulus spending boost to be a mild one and short-lived.
"As a business person, do I think this is a long-term fix? No. This is not going to jump-start our economy. What it is going to do is provide a quick influx of cash into the economy, but in no way, shape or form is it going to be a long-term fix," Gast said.
Sally Phillips is putting any thoughts of a stimulus out of her mind. The Lima mother of three knows the money is coming, it may even be in her bank account now, but she's trying hard not to look.
"Seriously, if I know it's there, I'll spend it. If it's there and I can ignore it, then it will stay there for a while," Phillips said.
Like many of us, Phillips' budget has taken a hit in recent months. Gas and milk are both orbiting around $4 a gallon, and she needs a lot of both. Add to that a winter heating bill that was almost double what she expected, and it won't take long for her windfall to blow away.
"I'm just going to use it to get caught up on the utilities and some other bills. If there's anything left, I'll let it sit and maybe we can go to Cedar Point this summer. That's about it," Phillips said.
Two cars away in the Lima Meijer parking lot, Cheryl Lewis is hatching a similar plan. Being single, she'll get just $300, just enough to pay her phone bill and fill up the tank. With the leftovers, she may treat herself to a little decadence. Very little.
"If there's anything left over, I'm going to Panera and get a mocha latté," she said laughing. "That'll probably about take it all up."

_{What you should do}
The government and business community hope we'll spend our money on stuff, but financial experts have a different opinion. Most recommend you make a plan for the money that includes taking care of issues more pressing than your coffee jones.
"The key word is plan," said Ted Beck, president and chief executive officer of the National Endowment for Financial Education. "These payments present an opportunity to think about what you value most, and then direct the money toward those values, whether it's paying off a credit card, adding to a savings account, fixing up your house or taking a much-needed vacation."
For most families, paying off heating bills or credit card debt left over from the holidays would be the sensible track, but that's going to require the discipline to pass up something you want in favor of something you need.
"It is difficult to resist the urge to spend the money as soon as you get it," Beck says. "But put some thought into this. Deposit the money into a savings account while you plan what you want to do. Then, make a list of all the ways you would like to use the money, put the list away for a few days to think about it, and then make your decision."
Vicki Hughes, program manager for Lima's Consumer Credit Counseling, has similar advice for her clients. Most need to prioritize spending and the top of that list should be the home.
"They should catch up on their utilities so they can start next season with a fresh start. If they're behind on their mortgage, defiantly use it there. You have to have your shelter. It's always shelter first," Hughes said.
Once the rent or mortgage is paid up and utilities are in line, the money should go to high interest credit cards or be put in a savings account, Hughes said.
That advise might have been a hard sell in the past, but given the state of the economy, it's a plan many will follow, Hughes believes.
"I truly don't think people are going to be just extravagant about it. I think people are very leery of what's going to happen. I think they're going to put it away for a rainy day or put it towards something that's meaningful," Hughes said.
Of course, meaningful is in the eye of the beholder. Jansen knows what he should do with the money. He also knows what he's going to do with he money.
"If I put it in savings, I'm going to spend it just as quickly. It will be gone in a month and I won't have anything to show for it," Jansen said, greedily eyeing the big screens at ABC Warehouse. "But, if I buy one of these, I can have that for years, or I can sell it next spring for money to buy gas."