Saving the stimulus

Nicole Costa checked her online bank statement each day until her economic stimulus payment arrived through direct deposit, boosting the balance by $1,200.

Instead of indulging in new clothes, electronics and consumer goods, however, the Cherry Point mother of two is saving most of her money.

"I put mine in the bank," she said. "I'm going to watch it grow."

Costa transferred $200 to her children's college funds, bought a hairdryer and stashed the rest in her savings account. She said few of her friends are planning an economic stimulus shopping spree.

"I guess I have a few friends who are doing fun things," she said. "I have one friend who's going to New York with hers, but four out of five people I've talked to are putting it in savings."

A recent survey by Parks Associates shows 42 percent of Americans plan to save their stimulus rebates rather than pump the cash into a wobbly U.S. economy. Some are using the extra tax refunds to pay ballooning bills or reduce credit card debt, according to

news reports.

"Of course, I do think some people are going to be thoroughly excited and buy themselves new clothes and buy a lot of DVDs, but I think they'll learn to keep it in their bank accounts," Costa said.

Climbing gas prices and related cost increases in food and consumer products are straining many middle-class budgets, and the Costas are no exception. Costa said she pays about $60 per week to fuel her Ford Five Hundred sedan, which she uses to shuttle her son to pre-kindergarten and drive herself to Craven Community College.

Her husband, André Costa, is a Marine Corps sergeant currently deployed to Afghanistan. Nicole Costa has learned to stretch every dollar as she raises her 4-year-old son, Niou, and 1 1/2 -year-old daughter, Alda.

Her college tuition is paid by the military, but textbooks come out of the family budget.

"I don't necessarily get excited when I know I have to pay for things like books and gas, but it's nice to know that we have a little bit of extra padding in the bank account," she said.

Costa is studying to earn her associate's degree at Craven Community College's Havelock campus and hopes to transfer to East Carolina University for nursing.

She prides herself on being financially responsible and living within her means, but that often forces hard decisions. The Costas canceled their cable television service last month.

"I don't even remember when gas was below $3, to be perfectly honest," Costa said. "It just means less. I can't take the kids to go eat or go do something because I have to save the money for gas."

Costa said the family dines out three or fewer times a month. Besides buying groceries, she rarely shops, preferring to spend time playing with her children.

"It's pretty uneventful, but I really don't have time to go out and spend frivolous amounts of money," she said.

The economic stimulus payment will help families cope with rising costs and shrinking budgets, but Costa said the benefits for many will be short-lived.

"I don't know how far it will take you, but I think it was like a high-five, a boost," she said. "Honestly, I just kind of think it's a morale booster. I think people look at it and say, ‘OK, a break.'"