Estimated read time: 2-3 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
[IN] FIN HOU
TO FAMILY, NATIONAL, AND RETAILING EDITORS:
Spend or Save? Five Ways to Make the Most of Your Tax Refund
WASHINGTON, April 14, 2014 /PRNewswire-USNewswire/ -- As tax season
comes to a close, approximately three-in-four taxpayers will receive a
refund from the IRS. While millions of Americans eagerly await their
reimbursement check from Uncle Sam, the American Bankers Association
has highlighted five tips for making the most of their tax refund.
"Using your tax windfall wisely can start you on the path to long-term
financial stability," said Frank Keating, ABA president and CEO.
"Before you splurge on a vacation or a 60-inch LED HDTV, it's
important to honestly evaluate your financial situation and consider
investing the refund in your financial future instead."
Below are ABA's key tips for consumers looking to put their tax refund
to good use:
-- Save for emergencies. Open or add to a high-yield savings account
that serves as an "emergency fund." Ideally, it should hold about
three-to-six months of living expenses in case of sudden financial
hardships like losing your job or having to replace your car.
-- Pay off debt. Pay down existing balances either by chipping away
at loans with the highest interest rates or eliminating smaller debt
-- Save for retirement. Open or increase contributions to a
tax-deferred savings plan like a 401(k) or an IRA. Where can you get
one? Your bank can help set up an IRA, while a 401(k) is
-- Put it toward a down payment. The biggest challenge that most
first-time home buyers face is coming up with enough money for a down
payment. If you intend to buy a new home in the near future, putting
your tax refund toward the down payment is a smart move.
-- Invest in your current home. Use your refund to invest in home
improvements that will pay you back in the long run by increasing the
value of your home. This can include small, cost-effective upgrades
like energy-efficient appliances that will pay off in both the short
and long term. If you have more substantial renovations in mind, your
bank can help with a home equity line of credit (HELOC).
For more consumer tips and resources on topics such as mortgages,
credit cards, protecting your identity and saving for college, visit
ABA's recently launched consumer website-ABA.com/Consumers.
SOURCE American Bankers Association
/CONTACT: Mike Townsend, 202-663-5471, email@example.com
/Web Site: http://www.aba.com/
CO: American Bankers Association
ST: District of Columbia
IN: FIN HOU
-- DC04664 --
0000 04/14/2014 15:31:00 EDT http://www.prnewswire.com
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.