By Anthony DeSalle, President & CEO, Crest Savings Bank
According to the Internal Revenue Service, more than 70 percent of the nation’s taxpayers received a tax refund averaging nearly $3,000 in 2017 and will get a similar amount this year. As Americans receive their refunds, Crest Savings Bank has six tips to help use the money wisely.
- Save for retirement or your child’s education. Open or increase contributions to a tax-deferred savings plan like a 401(k) or an IRA. Crest Savings can help set up an IRA, while a 401(k) is employer-sponsored. Look into opening a tax-advantaged 529 education savings plan through Crest Wealth Management to cover school expenses when your child reaches college age.
- Pay off credit card debt. Pay down existing balances either by chipping away at loans with the highest interest rates or eliminating smaller debt first.
- Invest in your current home. Home improvements can pay you back in the long run by increasing the value of your home. If you have substantial renovations in mind, Crest Savings can help with a home equity loan or line of credit.
- Pay down your mortgage or student loans. Make an extra payment on your mortgage or student loans to save money on interest while reducing the term. Be sure to inform your lender that your extra payments should be applied to principal, not interest.
- Save for emergencies. More than 60 percent of Americans are not prepared for unexpected expenses. You can prepare by opening or adding to an 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. Crest Savings offers savings and CD rates at www.crestsavings.bank.
- Donate to charity. Giving to charity will make a difference in your community, and you can also claim the tax deduction, if you itemize.
“Tax season is the perfect time to hit the reset button on your finances,” said Anthony DeSalle, President & CEO. “Your refund can help put you on the right path toward reaching your financial goals.”
Visit us online at www.crestsavings.bank or stop by one of our locations to see how we can help.
