In celebration of America Saves Week, February 25-March 2, here are a few tips from americansaves.org to make the most of our tax refund:
- It is not extra: most of it is the hard-earned money that you worked throughout the year
- Come up with a plan for your refund. Decide how this money will help you to establish or maintain financial stability
- Use your refund to build a rainy day fund
- Recent studies revealed, "40% of the population is unable to meet an unexpected $400 expense without going into debt" (e.g., taking care of a car problem, replacing a busted sump pump in your home, or replacing a damaged cellphone). A rainy day fund helps build your sense of security in case the unexpected happens
- Use your refund to pay down/off credit card debt
- By getting rid of past debt or high-interest credit card debt, you can focus on your future financial goals
- Use your refund to invest in your future
- Plan for retirement: consider contributing to an Individual Retirement Account (IRA) or 401K. Once established, set up automatic payments from your paycheck
- Establish a 529 savings plan to put money away for your child's education
America Saves established America Saves Week as an annual, national campaign for organizations and others to have a hyper-focused lens on promoting healthy financial behaviors. To learn more about #ASW19, please follow on Twitter @AmericaSaves and visit americasaves.org
To sign-up for America Saves Week, Click Here