The economic stimulus checks should be rolling out in May. 130 million American households will enjoy the extra change in the jar presuming they filed a 2007 tax return. Have you filed your 2007 taxes yet?

To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment. [Source: IRS.gov

The checks are coming in hopes you will spend the money on TVs, household items, and frivolous goods. The idea is too boost the economy through consumer spending. Your pockets are already burning, right? Well, hold on. This is not free money. The tendency to use the money for unnecessary items should concern any household hoping to save money.

This is not free money. The amount you receive will be counted as income on your 2008 tax return. Every person should set back at least part of the money to pay for its tax the following year. Otherwise, the tax return will just be hurt the following year.

But why not just save the money? We can stimulate our own savings account with the money. If you’re married the entire check could be placed in a savings account at 3% interest. This would reward you with an additional $36 dollars within a year’s time. That’s at simple compound interest.

So why not save the money, or at least part of the economic stimulus check for the future. We should all hold back at least enough to pay the taxes on it. What will you do with your economic stimulus check?