7 ways to make the most of your tax refund

  1. Direct Deposit: When you come in for your tax appointment with the VITA program, split your refund between your checking and savings account! Make sure to bring along your routing information and account number for your accounts.
  2. Reduce credit card debt: Debt is very expensive.  Consider the 30-40-30 Plan when making a plan for your refund: 
    1. Designate 30% of your refund to paying off debt and catching up on outstanding bills
    2. Earmark 40% for current use
    3. Use 30% to jumpstart an emergency fund or longer term savings
  3. Save for a major appliance: Try to anticipate what big expenses are coming up in your life and put a portion of the refund toward that - a major appliance, a car repair or tires, etc.
  4. Create an emergency fund: We can't emphasize saving enough!  It can make a big difference when you experience "unexpected" expenses - and we all know they do come up!  If you save $50 or more from your refund, you can enter to win prizes at Save Your Refund!  Make sure to check out their website to learn more!  Or you can purchase a Savings Bond when you distribute your refund at the end of your appointment!
  5. Save for a child's education: Open up or add to a Vermont 529 College Savings Plan!
  6. Boost retirement funds: Open up a myRA - a starter retirement savings account from the U.S. Department of the Treasury.  Or, add to an existing 401k, 403b, or IRA.
  7. Pay down on home mortgages: Paying extra on your mortgage can save you a lot of money in the long run!

If you're interested in putting at least a portion of your tax refund into savings, make sure to come to your appointment with the routing number(s) and account number(s).  If you are interested in starting a myRA, sign up before your appointment and come with account numbers.  If you want to purchase a savings bond, you can do that at the end of your appontment, on-the-spot!  If you're interested in entering the Save Your Refund drawing after you've saved at least $50, you can do so here!

If you'd like some assistance while making your plan for your refund, feel free to reach out to one of our financial coaches for help!  You can call 802-860-1417 or email growingmoney@cvoeo.org

Growing Money Staff Open Office Hours during VITA

 

 

 

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CVOEO addresses fundamental issues of economic, social, and racial justice and works with people to achieve economic independence.


 

Serving more than 10,000 households annually,
impacting the lives of over 20,000 individuals