MADISON, Wis. -- President George W. Bush and congressional leaders on Thursday agreed on terms for an economic stimulus package designed to give a boost to the flagging the U.S. economy. Some Madison area residents said that the plan, which includes tax refunds, will be a welcome assistance amid recession fears.

VIDEO: Watch The Report

The package will give most taxpayers refunds of about $600 to $1,200. Some will get even more if they have children. Officials said that there's a salary cap on the money. Single people making more than $75,000 and couples making more than $110,000 will get partial rebates, WISC-TV reported.

The measure must pass both the U.S. House and then the Senate before Bush can sign it into law. If lawmakers approve it quickly, Bush could get the measure by mid-February.

Experts said that the benefit of the refund all depends on what people do with the extra money once the check makes it to the mailbox.

One could say that Madison crossing guard Peter Daly's job often functions a lot like the economy: This direction one minute, back the other way a moment later.

Daly said that he's experienced economic downturns before.

"It's looking a little bleak at the moment," he said. "I've seen it, seen it much worse. I think we're just in a little lull here. We just got to bear with it."

Newly retired Bob Quackenbush agrees with that perspective.

"I think we're heading into a slowdown," he said. "I don't know if it's a recession yet. I think it's one of those eight-year cycles that we go through."

Some younger consumers said that they aren't so confident. College student Carly Evans said that she's concerned.

"I'd say I'm afraid this is what it's like," she said. "I don't know a lot about (economics) but I don't see any way that it could get cheaper or that the cost of living could go down."

Experts said that the key to Uncle Sam's economic stimulus plan is to boost consumer confidence. Moses Altsech, a marketing professor at Edgewood College in Madison, said that concerns about the economy can exacerbate the problem.

"People are jittery. People are uncertain about the future," he said. "And people are not out there spending money that they think they might be able to use later on, which is, of course, compounding the problem instead of solving it."

So what exactly will people do with the extra cash?

Daly said that he will likely hang on to a portion of his refund.

"There's always things to address, medical bills, things like that," he said. "But, mainly, I'm going to save it for tougher times."

Albert Borokhim, who owns Borokhim Oriental Rugs, said that he hopes the extra money helps generate those extra customers. He said that he's confident it will happen.

"We live in Madison, Wisconsin. This is a great town. We have been recession-proof, and I am very, very hopeful for the future," Borokhim said.

You heard a lot of people talking about a recession.

While the word "recession" has been bandied about in the media in recent weeks, experts said that sometimes recessions can be psychological. If people don't have confidence in the economy, a recession can often become a self-fulfilling prophecy, they said.

Officials said that checks from the stimulus package, should it pass, could come by June or July.