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Biden starts planning $3 trillion infrastructure package: Here’s how the headlines can affect your money

Biden's package includes provisions for free community college and universal pre-kindergarten.

U.S. President Joe Biden stops briefly to talk to the press as he walks toward Marine One on the South Lawn of the White House in Washington, DC.
Drew Angerer | Getty Images News | Getty Images

Markets rose Monday ahead of the bull market's one-year anniversary, there's a $3 trillion infrastructure package developing, and 56% of Americans are still living paycheck to paycheck. Here's how the headlines could affect your money.

Markets rose Monday

Markets rose Monday, boosted by tech stocks. The S&P 500 gained 0.7%, the Dow gained 0.3%, and the Nasdaq gained 1.2%. 

Markets were down Tuesday morning, which marks one year since the new bull market began. Since the March 23, 2020, low, both the S&P 500 and Dow have risen more than 75%, while the Nasdaq is up more than 90%.

New $3 trillion infrastructure package

President Joe Biden is working on his next major piece of legislation: a $3 trillion infrastructure package that would invest in projects including roads, bridges, and electrical vehicle charging stations to help boost the economy while shifting to cleaner energy. The package also includes provisions for free community college, universal pre-kindergarten, and paid family leave.

While Biden's goal is to create a bipartisan package, congressional Democrats have said they would move the legislation forward alone if they found no Republican support.

How to spend a stimulus check if you're unemployed

Video by Jason Armesto

Over half of Americans are living paycheck to paycheck

More than half, 56%, of U.S. adults are living paycheck to paycheck, with 43% of adults saying they are "extremely" or "very" reliant on the third round of stimulus being sent out this month, according to a recent JungleScout Consumer Trends Report.

It's no surprise that 2020 brought tremendous financial hardship. When your third stimulus check arrives, experts suggest paying yourself first. Focus on essentials like outstanding bills and building an emergency fund, then move on to saving for the future and paying down debt. 

Words you've heard: full employment

Full employment means that as many job seekers as possible find work without so much competition that employers have to hike up wages and risk causing inflation. Treasury Secretary Janet Yellen has said she believes the U.S. can get near full employment in 2022.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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