How to Make the Most of Your Tax Refund!

1
How to Make the Most of Your Tax Refund!

• Robin Seemann-AFC, Director
• Economics, Education Empowerment Program

2
What to Do?
3
BE SMART!

• An income tax refund can never come at a bad
  time. The only hard thing about getting money is
  deciding how to spend it. You could always blow
  it on some gadget you'll forget about in a month.
  Or, you can spend your tax refund on something
  that will benefit you in the long run by
  strengthening your financial situation. If you're
  due a refund, here are some smart ways to spend
  it!

4
You Received a Large RefundThe PROBLEM IS

• Ohio Department of Job Family Services SNAP
  benefits Food Stamps
• Limits your resources
• 2000 in Countable Resources such as bank
  accounts is permitted to still qualify for your
  foodstamps
• So now what?

5
Be Savvy with those Funds

• While you can only maintain a limited amount
  of resources, there is still the ability to save.
  FEED THE PIG!
• Start and Emergency Savings Account
• You should have enough money saved to cover one
  months expenses if not all of the expenses At
  least enough to cover housing, transportation and
  necessities
• 1000 - 1500 Saved!

6
FEED THE PIG

• Putting your refund away for a rainy day is a
  wise decision. It keeps you from having to use
  your credit card when you face a financial
  emergency.
• Without a lump sum to jumpstart your emergency
  fund, it could take you months to set aside
  enough money for your emergency fund

7
Have you saved enough for your short-term goals

• Are you planning on taking a vacation this
  year, or do you plan on blowing it out for the
  holidays? If you are planning something and you
  answered no, then dump your refund into an
  account specifically dedicated to an annual
  vacation or holiday fund. This will make sure you
  dont have to go into debt to go to the beach or
  buy presents.

8
Pay Your Rent Car Payment in Advance

• Instead of blowing the cash all within 30 days
  and not having much to show for
• Pay your rent or mortgage ahead by a few months
• Pay your utilities ahead
• Pay your car payment ahead
• This could improve your credit rating
• Doing this will always keep you ahead of the
  game. Being ahead will also be helpful if an
  emergency should arise.

9
PAY OFF DEBT!

• The best investment most borrowers can make is to
  pay off consumer debt with double-digit interest
  rates. For example, if you have a 3,000 credit
  card balance at 19.8, and you pay the required
  minimum balance of 2 of the balance or 15,
  whichever is greater, it will take 39 years to
  pay off the loan. With accumulating interest, you
  will pay more than 10,000 in interest charges

10
Answer your phone pay your bills!

• Tired of late notices and debt collector phone
  calls? Avoiding them doesn't make them go away
  it simply prolongs the collection process and
  damages your credit in the process. Use your tax
  refund to take care of those late bills. Your
  credit score will thank you and you'll thank
  yourself for finally getting rid of
• annoying collectors.

11
STOCK NECESSITIES

• Buy those non perishable taxable items and
  groceries you know you are going to need
  detergent, hygiene products, paper products etc.
• Are there any household appliances that you need.
  Buy smart items that you know you need

12
PURCHASE WORK AND SCHOOL CLOTHING

• Without a doubt you will need work or school
  clothing for yourself or your household members.
  Buy them now so there will not be a hardship at a
  later date! Perhaps buy some birthday and
  Christmas presents ahead of time
• This can save the heartache of choosing to pay
  rent, utility and car payments verses buying
  presents
• ONLY to have, late fees disconnect notices or
  repossession conversations come up!

13
How RELIABLE is Your Transportation?

• Are struggling to get to and from work, school,
  grocery stores, doctors offices, church or any
  other place?
• Do have to depend on others?
• If you have a vehicle is it giving you
  maintenance issues or worth fixing?
• Are you leery of applying for credit due to past
  poor credit decisions you made?

14
How RELIABLE is Your Transportation?

• There is an affordable option for financing a
  vehicle if you are a working parent
• The option provides opportunity to establish or
  re-establish credit (and the rate is only 8)
• Contact The Ways to Work Loan Program at
  330-454-7066 ext 200 for an affordable character
  based auto loan.

Make your DREAM of car ownership a REALITY
15
Treat yourself, but don't OVER DO it.

• How fun would life be if you only spent your
  money on bills? It's ok to spend money leisurely,
  but remember, there's a balance.
• The key Take care of your responsibilities
  first, then enjoy your money second. Before you
  spend a dime of your tax refund, make a plan for
  how you're going to spend the money.