Stimulus Update: Here's Why the Average Household Could Have an Extra $200 a Month, According to President Biden

How much extra cash will you have?

President Joe Biden had some good news for people across America on Dec. 19, 2022.

The president sent out a series of tweets during the holiday season, detailing what his administration has accomplished for average Americans. And one of those tweets directly related to a big change that could mean an extra $200 in the typical household's budget.

Here's what it is.

Will you end up with some extra cash in your bank account?

President Biden's Dec. 19 tweet explained exactly why he believes the typical American will have more money in their bank account this year.

"Right now, families with two cars driving home for the holidays are saving $200 a month on gas compared to mid-June's peak," the tweet explained.

High gas prices have been wreaking havoc on Americans' budgets for a very long time, but prices have started to fall dramatically in recent months. And while a drop in prices isn't exactly the same as the government making an extra direct payment into peoples' accounts, it can have an equivalent effect.

If you were spending $200 more per month on gas during the summer and you now get to keep that money for other things thanks to falling prices, these reclaimed funds can allow you to do other important things with your money -- like spending it on more fun purchases or saving it.

Because of falling gas prices, and a general decline in inflation that the president also touted in his tweets, demand could increase for goods and services because people are no longer feeling the pain at the pump. And this could have the effect of stimulating the economy as a whole, leading to increased job growth and more prosperity for everyone.

What should you do with your extra $200?

If you're among the many Americans who will save around $200 per month on gas, this is a great opportunity to redirect that money to accomplishing things that matter to you.

If you acquired some debt during the time when prices were high, you can funnel that cash you're now saving on gas towards paying it off. If you didn't go into debt but you instead cut other expenses to afford higher prices at the pump, consider whether you can keep those cuts in effect so you can use the extra $200 to bulk up your retirement savings, save for a home down payment, or save for other big purchases.

The good news is, with prices down, you may find yourself with a lot more wiggle room in your monthly budget and the $200 you were devoting to filling up your tank is money that's yours again to make the most of.