Financial Literacy for Everyone
Follow Us
FacebookTwitterYouTube
For Broadcasters

Sign up for our weekly email and learn how you can play Jason Alderman's weekly Practical Money Matters on your station. Learn more

Subscribe
Play NFL

Challenge yourself with Financial Football
Play our fun video game to test your knowledge about money.
Play now

PMM articles

Practical Money Matters
Disputing a credit card charge? Graduating? Leasing a car? Learn important tips from our weekly article series.
Read now

social media

Connect with us!
For daily money tips, quips and pics, follow us on social media.
Like us on Facebook
Follow us on Twitter

Practical Money Matters Radio Series

April 18, 2011
Stop Giving Uncle Sam a Free Loan


How a big tax refund could be costing you, and what to do with the refund check you’re expecting this year.

Transcript

Nothing beats the feeling of getting a nice, big tax refund, right? You might not feel the same way when you consider that getting a refund is essentially like giving the government an interest-free loan throughout the year. You have better options.

First, get on track for next year. Ask to fill out a new W-4 withholding form at work. You can adjust the number of allowances claimed so the right amount of federal tax gets withheld. Next: think about how you’ll spend this year’s refund. Here are a few smart options:

• Pay down your debt to lower the amount of interest you pay in the long run.

• Put your refund in an emergency fund; try to save enough for six months’ worth of living expenses.

• Or, add it to your IRA or 401(k) retirement account.

Bottom line: Make this the last year you give an interest-free loan to Uncle Sam.


Related Articles

Email to a friend

Your Name:
Your Email:
Recipient's Email:
Message:
Enter code:


The information that you provide through this e-mail feature will not be stored by Visa for any other purposes. Please refer to Visa's privacy policy for details.