Money Basics Tips

Smart ways to spend your tax refund

June 30, 2020

How you spend your tax refund may look a little different this year.

Spend (a little)

Consumer spending is crucial to getting our economy back on track. Use your First PREMIER® Bank credit card to make responsible purchases. Even better? Spending your money at local businesses. One study found that $68 of every $100 spent at local businesses stays within the community.

Start an emergency fund

Everyone already knows it’s important to save money; and if you’re like most people, that’s easier said than done. Kickstart your savings with your tax refund.https://firstpremier.everfi-

Invest in yourself

If you have the means, now is a good time to upgrade your skills. Take an online class so you’re ready when the next job opportunity presents itself. Look for low-cost or free options available in your community or online.

Donations/charitable giving

Charities are hurting right now. Donating to a cause you care about does more than just benefit the charity itself; knowing that you did something to help others can be a major mood lifter. Be sure to do your research first and make sure your funds are going where the charity says they are.

Retirement

It’s never too early or too late to contribute to your retirement fund. Contributing to an IRA or 401(k) now can have big benefits down the road. Every little bit helps.

Eliminate debt

Two common methods of paying off debts are the avalanche method, where debts with the highest interest rates are paid off first, and the snowball method, where the smallest debts are paid off first. Find out how much interest you may save by using one method over the other and use your tax refund to get started.

This information is presented for educational purposes only. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

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