ABA Offers Tips on Prioritizing Tax Refunds

At a time of year when many Americans anticipate tax refunds, ABA has released seven tips to help them use the money wisely. “Prioritizing your tax refund to create an emergency fund and pay off debts first will help position you for financial comfort the rest of the year,” said Corey Carlisle, executive director of the ABA Foundation. “As those who have been affected by the federal government shutdown this year can attest, financial challenges can arise quickly and it’s critical to have money set aside for those unexpected hardships.” In addition to saving for emergencies and paying down debt, the tips address retirement and education savings; investing in bonds and home improvements; and the benefits of charitable giving.

ABA also stressed the importance of lower-income workers filing a tax return — and recommended that consumers file their returns as early as possible this year to adjust for recent changes to the tax code.