5 Slick Ways to Use Your 2015 Tax Return
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1. Knock out leftover holiday debt. Are you one of the many shoppers who racked up consumer credit card debt last Christmas? We can all go a bit overboard buying presents at the end of the year, but many people forget that their tax returns may be just enough to pay those debts off completely. Of course, feel free to pay off other debt while you’re at it. Tax returns can be a new thing for young families who have just finished college and hit the world of full-time work. If you or your spouse have student debts, take a chunk out of it with your tax-return money. Paying off your debt now will give your family financial peace of mind later.
your emergency savings account has enough money to cover several months of expenses. If you’re in this boat, congratulations! You are already above average when it comes to personal finances. Now, don’t mess up by splurging on a pair of diamond earrings that your toddler is just going to tear out of your earlobes and drop down the toilet. This year’s tax return is your chance to make a conservative, long-term investment. Look at your options. A certificate of deposit (CD) or low-risk mutual fund may provide the perfect environment for your money to grow. Both will beat the minimal interest rates available in savings or moneymarket accounts. You may even want to open an IRA and let that cash grow with decades of compound interest. 4. Give it to your children. If you have taken care of your own needs, it’s a good idea to think of your children’s futures. Not only can this money help your children afford higher-education expenses or cover the costs of moving out some day, but opening a savings account in your children’s names also gives them a financial history and establishes a good life habit of liquid savings. You may also want to consider opening a CD or mutual fund for your children so the money can grow, especially if your kids are quite young. They will appreciate the help paying deposits on their first apartments more than a set of $300 headphones.
5. Take a family trip. Some years are just harder than others. We all feel the need to be rewarded for our efforts, and a tax return can be a huge reward for hard work. If you have no outstanding debt, going 2. Stash your cash. Absolutely on a family vacation may be the every family needs emergency perfect reward for you and your loved savings. Rainy days happen to all ones. This may seem contradictory of us, so if you have no debts to to the previous advice not to buy pay, use your tax return to start or a gizmo, but in this case, you’re supplement an emergency savings buying experiences, not things. account, an account only used for Time is a resource that is more real emergencies. One easy way to valuable than money. You exchange make sure it stays that way is to use your time with your family in order a separate bank or credit union for to work and earn money. So, if you this particular savings account. Keep get more of that money, use it to it out of sight so it’s also out of mind spend time with your family. Today’s when you want to make an impulse new smartphone is tomorrow’s dusty purchase on a pair of $300 running 8-track player, but today’s trip to shoes. Yellowstone is tomorrow’s fond family 3. Start a conservative investment. memory. If you’re going to splurge, do it the right way — together. Say you don’t have any debts, and
Many parents contribute money toward the purchase of their teenagers’ first car. But even those who don’t help kids finance the purchase of their first vehicle may still want to offer some advice as their teens start to look for the car they will no doubt remember for the rest of their lives. Different drivers need different things out of their vehicles, so a car that might be perfect for adults will not necessarily be the best fit for teen drivers without much experience traversing the nation’s roadways. The following are a few factors to consider when helping teens find their first car. SIZE Teenagers have little to no experience behind the wheel, so it’s best that they not drive cars that are especially small or large right away. According to the National Highway Traffic Safety Administration, young drivers between the ages of 16 and 17 are significantly overrepresented in fatal crashes. The NHTSA suggests such drivers’ immaturity and inexperience plays a significant role in that overrepresentation. So parents likely do not want their children in the smallest car possible, as such vehicles may not protect teens as adequately as slightly larger vehicles in the case of an accident. In addition, very large cars, such as pickup trucks or SUVs, can be difficult to control and are best suited to older drivers who already have years of driving experience under their belts. A mid-size sedan is big enough to protect teens and their passengers in the case of an accident, and such vehicles are small enough to handle easily. PASSENGER CAPACITY Another factor to consider when shopping for cars for teenagers is passenger capacity. The more seats there are in a car, the more friends teens can pack into their vehicles. Numerous teenagers in a car at once can prove distracting to the driver, and that distraction can pave the way for an auto accident. Steer clear of minivans, SUVs or other vehicles that feature a third row of seats, as teens may be unable to stay focused on the road with so many passengers in tow. UNDER THE HOOD Few teens would not light up at the sight of a muscle car awaiting them in the driveway. But cars that accelerate quickly and those with substantial horsepower and high-performance engines may tempt teens to speed or spark the development of poor driving habits. Look for a vehicle with modest acceleration instead of an imported sports car that teens may be too immature and inexperienced to handle. WEAR AND TEAR Teens’ first cars are often preowned vehicles, and such cars may have significant wear and tear on some important safety features. Wear and tear may not be a reason to avoid purchasing a preowned vehicle, but parents may want to replace the brake pads and tires on recently purchased preowned vehicles. Brake pads in strong condition may prove the difference between avoiding an accident or getting into one. In addition, poorly inflated or worn down tires pose a safety risk. If such features seem to be worn down, replace them before letting teens hit the open road. Teens will remember their first cars for the rest of their lives. Parents can ensure those memories are positive by finding a car that teens can handle comfortably and operate safely.
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moments | March 2015 | www.statesboromoments.com
ax season is here — the time of year when accountants advertise that billions of tax dollars have been collected worldwide that can now be claimed by you, the workers who paid them in the first place. For many families, it’s tradition to take a nice chunk of that change and buy a fancy doodad that wasn’t in the budget mere months before. But why waste a windfall on a fancy television when you already have a perfectly good TV? The temptation is understandable; doodads and gadgets are shiny and new, and fiscal responsibility just isn’t quite as fun as a smartwatch that you’ll use five times before you forget you ever bought it. Still, don’t let this year’s tax return slip through your fingers in the name of retail therapy. Here’s a list of five better ways to use your tax return.
Deseret Digital Media
WHAT TO LOOK FOR IN A TEEN’S FIRST CAR