Christina Harris considered her options carefully before spending her economic-stimulus payment.

Paying bills came to mind first, but the thought quickly vanished in favor of something else -- body art.

Harris, 26, is using $150 of her $600 rebate to get her 11th tattoo, a cartoon cat. The Henrico County resident already has a pinup girl and stars on her side and praying hands and a cross on her back.

"I wanted to do something for me," said Harris, who will use the rest of the money for a trip to Trinidad with a friend. "It seems boring to do something that's not fun."

The Treasury Department began making economic stimulus payments April 28. Early tax filers and those who chose direct deposit are getting their payments first.

A National Retail Federation survey released Tuesday found that consumers plan to spend about 40 percent of their payments, sending $42 billion back into the economy.

According to the survey of 8,347 consumers from April 29 to May 7, about 17.2 million people plan to use some of their rebate to pay for gasoline, up from 12.1 million people who planned to do so in February.

The rising cost of everyday items such as milk, bread and rice also means that more consumers plan to spend the checks on groceries, with about 21.2 million people using a portion of the check for food, up from 20.4 million people in February.

. . .

"My view is, it's a gimmick," said Tom Tullidge, managing director of Cary Street Partners, an investment banking and management-wealth firm in Richmond. "It does make people feel good, but it's short-term."

As gasoline prices soar and the economy continues to struggle, many people will use their rebates to keep their heads above water, Tullidge said.

"It would have been better to create long-term economic value, like creating new jobs or getting people to invest in U.S.-made products," he said.

Bruce Whitehurst, president and chief executive officer of the Virginia Bankers Association, said he has not heard much about people investing their rebates into savings. "By the time you buy a couple of tanks of gas and a couple gallons of milk, I don't know if there will be anything left," he said.

Tracey Malkie and her husband, Scott, are using their stimulus check to bring their adopted son, Van, home from China. His one-way ticket will cost $800, which eats up much of their $1,200 payment. The Chesterfield County couple left Thursday for Beijing.

"It was perfect timing for us," Tracey Malkie said. "As far as the cost of adopting goes, this is just a blip on the radar. But every little bit helps."

Steve Smith, 52, will use his extra cash to make repairs around his Hanover County home. "If anything is left, it will go into the bank," he said. "I feel obligated to save some of it."

Troy Corley, a father of three, doesn't see how he can deposit any into savings.

"With the gas crunch and unexpected expenses, mine was gone before I got it," he said.

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Local businesses, however, are hoping people will spend, spend, spend. To entice shoppers, some are advertising special deals.

Use your stimulus check as a down payment, and Victory Nissan in Short Pump will match it up to $1,500.

"We are doing what we can to help stimulate the economy," said John Littell, a sales manager. "It all starts with houses and cars."

Like other dealerships around town, Victory Nissan is feeling the pain of a slumping economy. Sales are down 5 percent from last year, Littell said.

The stress of a shaky economy is leading some to use their payments for a relaxing getaway. Fifi Yoder and her husband, Tim, are planning a trip to the mountains or beach with their three children.

The Yoders, who live in Rockville, will take their vacation in September, when the busy travel season has ended.

"I think a lot of people are going to do what we are doing," said Fifi Yoder, 42. "You don't get money like this to spend all the time. So when it comes, you want to do something a little special."
Contact Janet Caggiano at (804) 649-6157 or jcaggiano@timesdispatch.com.