SPOKANE, Wash. -- With stimulus checks hitting bank accounts and tax refunds on the horizon for some, financial experts are advising people to make a plan for what to do with the influx of cash.

Jon Maroni, marketing director for Canopy Credit Union in Spokane, said obviously, the necessities such as groceries come first.

If folks have that covered, he suggested people should build up their rainy-day accounts, which should be enough to cover the bare essentials such as rent and utilities for three months.

"A majority of households, and I'm guessing this number has increased, cannot afford a $400-$500 expense without accessing some form of credit," Maroni explained. "And so, this could be, if your base-level expenses are already taken care of, the opportunity to really develop that emergency fund."

The $1,400 stimulus checks hit bank accounts as early as Wednesday. Payments phase out for individuals making more than 80,000 dollars a year or married couples jointly making 160,000 dollars.

In the first round last year, 3.5 million Washingtonians received stimulus payments, totaling $6 billion.

Maroni pointed out people should also pay down their debts with stimulus money and tax refunds.

If that's not an issue, they can contribute to their retirement fund.

If they're really fortunate, folks can donate that money to nonprofits or someone in need.

Maroni also advised people not to judge someone for how they spend their stimulus checks. They could have been recently evicted or struggling with food insecurity.

"Remember that they have experienced not knowing where their next meal is going to come from," Maroni observed. "So when you have money, you spend it on those things, because if your experience has been 'I don't know how long I'm going to have this money for,' that really, really changes how you handle finances when you get a windfall."

Maroni added if folks aren't sure what to do with the money coming in, they can reach out to their local financial institution for individual advice.

His credit union offers free coaching for members and people in the community.


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Consumer groups are accusing major grocery retailers - like Amazon, Kroger and Walmart - of price gouging, both during and after the pandemic.

The allegation of corporate greed comes after a new report from the Federal Trade Commission found profits for grocery chains jumped sharply, at rates that could not be justified by supply chain disruptions.

Angela Huffman is president of the nonprofit Farm Action.

"It's one thing to raise your prices to cover higher expenses, but what these companies did is use the pandemic as an excuse to exploit the American people who needed to put food on their tables," said Huffman. "And the FTC report shows that they're still doing it, here in 2024."

The report found that retailer profits rose to 6% over total costs in 2021, and 7% in the first three quarters of 2023 - compared to 5.6% in 2015.

According to a report from Help Advisor, California households pay the highest grocery costs in the country, averaging almost $300 a week - about $27 more than the national average.

The Food Industry Association blames today's high prices on high labor costs and credit card payment fees.

Huffman said she thinks the feds should take anti-trust action to increase competition - and consider forcing the grocery behemoths to break up.

"That would be the ideal outcome is to take away their excessive power," said Huffman. "But other than that, these companies can be fined for this kind of price gouging. And that's another action we would support. There needs to be some kind of consequences."

The FTC staff report recommends "further inquiry by the commission and policymakers," but doesn't propose specific remedies.




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Air travelers could face fewer obstacles in securing a refund if their flight is canceled or changed under new federal rules announced Wednesday.

The moves are being praised by watchdog groups. The Department of Transportation said airlines are now required to promptly provide passengers with automatic cash refunds when they are owed one.

Teresa Murray, consumer watchdog director for the U.S. Public Interest Research Group, said some carriers have not adhered to standards, leaving passengers in a bind.

"They would drag their feet, and they would say, 'Well, you bought your ticket from a ticket agent, so we don't know where your money is. Or, here, have a voucher,'" Murray explained.

Amid higher complaint volumes, companies will be forced to act quickly. The new rules, which are being phased in, provide clearer definitions for travel disruptions, including delays of at least three hours on a domestic flight and six hours on international flights. A key industry group responded to the announcement by touting transparency efforts among carriers.

Murray acknowledged most people are not frequent flyers, and it is hard for them to keep up on all the least practices and policies among airlines.

"The average person only flies once every 18 months," Murray pointed out. "This will just bring transparency to that process and it kind of evens the playing field."

Murray added it could come in handy for Midwestern customers when a winter storm wreaks havoc on air travel. The new rules also require refunds for baggage fees when a piece of luggage is delayed by 12 hours or more for domestic flights. And there must be upfront disclosure on fees for first and second checked bags and carry-on bags.


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Wisconsin lawmakers recently debated reforms for payday loans. Efforts to protect consumers come amid new research about financial pain associated with cash advances offered through smartphone apps. The Center for Responsible Lending is out with findings that detail how "earned wage advances" from digital platforms come with extra costs disguised as things like tips. Traditional payday lenders are often criticized for charging excessive interest rates on loans that are usually around $500.

Lucia Constantine, a researcher with the Center for Responsible Lending, said customers are usually seeking smaller amounts from the apps, but she warns they can be just as costly.

"They are trapping consumers in a cycle of borrowing that is similar to that of a payday loan, " she said.

The report said after using these financial products, customers are seeing overdrafts on their checking accounts increase by 56% on average. Industry leaders deny they're barraging consumers with hidden fees, stressing that features such as suggested tips are optional. More broadly, a bipartisan payday loan reform bill in the Wisconsin Legislature failed to advance this month.

Constantine said like longstanding payday lenders, these cash advance apps can be hard to regulate. Meanwhile, she urged those in a bind to explore other options.

"[They should] try talking to their friends and family as a first source. The other option which I would recommend is reaching out to their credit union or banking institution to see if they can get some sort of small-dollar loan," she said.

She noted places such as credit unions typically provide more transparency on loan costs. According to the report, three-quarters of consumers took out at least one advance on the same day or day after a re-payment was posted.


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