Make Your Tax Refund Work for You!It’s easy for us to think of this year’s tax refund as free money coming to us courtesy of Uncle Sam. However, the truth of the matter is that the check you receive is a return of your own hard earned money. And since you’re going to get your own money back, why not use it to get ahead of your financial goals?
In 2014, sixty-nine percent of those polled by American Consumer Credit Counseling indicated that they had used their tax refund to pay down debt and get ahead on monthly expenses, including rent, utilities, and car payments. In 2013, twenty-six percent indicated they would put their refund into savings, while forty-five percent said they would use it to pay down credit card debt. The National Retail Federation saw that forty-six percent of its 2014 survey respondents intended to cushion their emergency savings with their returns, with nearly six in 10 young adults between 18 and 24 putting their refunds into savings. The results of these surveys are indicative of a growing, budget-friendly and money-savvy trend: Americans are opting out of tax-time splurging and are focusing on getting ahead. Here are a few easy ways to get yourself set up for success as tax season approaches:
Tammy Greynolds works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Learn more at americasaves.org. |
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