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Senate passes $1.9 trillion Covid relief bill with $1,400 stimulus checks: Here's how the headlines can affect your money

One key part of the legislation would make canceled student loans tax-free.

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Senate Majority Leader Chuck Schumer, a Democrat from New York, speaks during a press conference at the U.S. Capitol in Washington, D.C., on Saturday, March 6, 2021.
Ting Shen | Bloomberg | Getty Images

Markets rallied. The Senate passes the $1.9 trillion Covid relief bill, which includes a third round of stimulus checks. Plus, what exactly is a non-fungible token? Here's how the headlines could affect your money.

Markets rallied to close out a volatile week

All three major indexes posted big gains Friday after an up-and-down week. Despite the last-minute rally, the Nasdaq still fell more than 2% for the week. The Dow and S&P, however, were both up for the week, rising 1.8% and 0.8%, respectively.

The Dow jumped more than 600 points to a new record high Monday.

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Senate passes $1.9 trillion Covid relief bill 

The U.S. Senate passed President Joe Biden's $1.9 trillion Covid relief bill Saturday morning along party lines. The bill is very similar to the one the House passed last week but has a few key differences. Among them: The federal unemployment supplement will remain at the current $300 per week, rather than $400. Senators also removed the original bill's provision increasing the federal minimum wage to $15 per hour.

The legislation now goes back to the House to be reapproved on Tuesday and Biden is expected to sign it shortly after. Biden has said that people should begin receiving their $1,400 stimulus checks later this month.

Canceled student loan debt could become tax-free

The stimulus package does not include student loan forgiveness. Still, it would make future cancellations of eligible student loans tax-free through the end of 2025. Currently, many kinds of forgiven student loan debt are considered taxable income.

The president has said he favors clearing $10,000 worth of student loan debt per borrower.

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Words you've heard: non-fungible token 

A non-fungible token is a digital asset, such as a short video clip, that uses blockchain technology (the stuff inside bitcoin that keeps track of its ownership history) to ensure that each NFT is unique and indivisible. In essence, it's a piece of internet content with a certificate of authenticity.

Some NFTs have fetched big bucks: A video clip featuring former president Donald Trump went for $6.6 million, and a digital rendition of the popular Nyan Cat meme fetched $590,000.

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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