Dreaming About a Tax Refund?

Call Sterling Van Dyke Credit Union at 586.264.1212 for an appointment to discuss ways we can help you plan your financial future.
Instead of rushing out and spending your refund, though, consider treating yourself to a bit of financial happiness and reduced stress. How can you do that? Follow a few money-saving tips.

Are you expecting a tax refund this year? If so—and if you’re like millions of other Americans—you’ve probably already begun to plan how it will be spent.

Pay off credit card balances. Use your refund to pay off any outstanding credit card balances. You've worked so hard for your money, so don't just give it away to the credit card companies. Each year consumers lose millions of dollars paying interest on credit card balances.

Save for college. Do you have a college education bill looming in the future? With the rapidly rising costs for a college education, a mutual fund may be just the place for your refund (especially if your kids are more than four years from graduation). If your kids are in high school already, a certificate of deposit (CD) or money market account with check writing privileges may be a better alternative.Either way, $1,000 earning interest over a couple of years is smarter financial choice than a big screen TV today and a student loan tomorrow.

Add money to (or create) your emergency fund. Individuals are advised to have an emergency fund amounting to six months' worth of living expenses. Using your tax refund here is a good place to start.

Save for holiday shopping. Do you remember how expensive holiday shopping was this past holiday season? Even if you've already paid this year's balances off, there is nothing wrong with planning for next year. By purchasing gifts throughout the year, you can shop at your own pace and find items on sale. This tip also reduces stress, allowing you to avoid crowded malls during the already busy holiday season.

Consider increasing your exemptions. If you're receiving a substantial return each year you may want to think about increasing your exemptions on the W-4 form you file at work. The extra money you see in your paycheck could be automatically transferred into a savings account. When the government holds your money until the end of the year, you earn no interest.

Spend some and save some. For some people, the temptation of all that money is just too much and the need to buy something persists. This is understandable, but there can be a happy medium. Spend part of your return and save the rest. You will feel good enjoying your new purchase and seeing your monthly savings account statements growing throughout the year.

Article from lovemycreditunion.org

Money Smart Kids Ages 11-14

SVDCU wants to share tips for teaching children good habits about money management. The information was originally published in Smart Parenting - Money Smart Kids.
This is an especially important time for learning about money. Your kids will have more cash now, along with the maturity to begin making decisions about how it's handled. Give them control of the money and the room to make mistakes and learn lessons.

More Money, More Responsibility

Increase the amount of your kids' allowance and add the responsibility of paying for school lunches or other needs. Make the allowance large enough to cover their entertainment expenses. Let them decide how these fun-time dollars will be spent movies, video rentals, snacks, bowling with friends. Provide additional decision- making opportunities by setting a spending limit on purchases and letting your kids shop for birthday gifts for others.

Life Lessons

Use more complicated financial situations as opportunities to teach your preteens and teens about money. Let them see how your major financial purchases involve trade-offs. If your family is buying a new computer or car, for example, ask your kids to help you research which one to buy. If you are refi­nancing your house, show them how small differences in interest rates equal big savings.

Earning and Saving

Continue to stress the value of saving. If your kids want something that costs more than you're willing to spend, suggest ways to earn the differ­ence: odd jobs around the house, baby-sitting or washing the neighbors' cars. Give your kids free reign over their spending money, even if they seem careless. They may blow all their earnings on frivolous buys, but when they realize they're broke, they will learn to be more frugal.

Truth in Advertising

Advertisers spend millions of dollars trying to hook young adults on spending—or influence their parents' spending. To prevent your kids from being lured by glitzy ads and fads, talk with them about the ways advertisers make people want to buy. Discuss the fact that ads are often short on facts but use lots of false promises.   In the case of celebrity endorsements, explain that celebrities are paid to sell products they may not even use or like. By learning how ads use the power of persuasion, your kids are less likely to be influenced.

You can teach your children how to save money by partnering with SVDCU. Open an account today with a minimum deposit of $10.00. They then become a member of the "Very Important Kid" Club.