Daily Dupaco

Thursday, March 19, 2015

What will you do with your refund from Uncle Sam?

A growing number of Americans are taking a more cautious approach with their tax refunds this year, choosing to save – rather than spend – their money from Uncle Sam.

According to the National Retail Federation’s annual Tax Returns Survey, 47 percent of those expecting a refund plan to put the money into savings, the highest percentage in the survey’s history.

Dupaco Community Credit Union’s Andrew Houy isn’t surprised that more taxpayers are making saving a priority.

“With rising costs of items like food and gas, I think that people are realizing the importance of saving in the event of an emergency,” said Houy, lending consultant/operations assistant at the Key West, Iowa, branch. “There’s some comfort that comes from having a nest egg.”

When receiving a tax refund, it’s important to think “big picture” instead of satisfying a short-term need, Houy said. While everyone’s financial situation is unique, here are three “big picture” ways to use that refund wisely:

  1. Pay down high-interest debt. Paying down debts, especially those that carry high-interest rates, can alleviate monthly payments and ease long-term payback concerns, Houy said. 
  2. Use it for necessary expenses. Putting the refund toward a bigger, necessary expense, such as auto insurance, also can bring budget relief. 
  3. Create a nest egg. “Establishing a nest egg with long-term intentions is critical,” Houy said. 

Not sure how to best use your refund? A free Dupaco Money Makeover can help you compare how much your refund would save you in loan interest to how much it would boost your savings.

 

By Emily Kittle

Comments (0)

Post a Comment

Please provide your information. Name and email address are required. Email address will not be displayed with the comment.
 
Name:
Email:
Comment Title:
Comment:
 
Security:
Please enter the code shown in the image
 
 
 

Thank you. Your comment is being reviewed and if approved, will be posted shortly.

Related Content
Daily Dupaco Archive