Getting a hefty tax return can seem like free money, but college students should view it as money they've already earned, Suzanna de Baca, vice president of Wealth Strategies at Ameriprise Financial told Fox Business.
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SALT LAKE CITY — Getting a hefty tax return can seem like free money, but college students should view it as money they've already earned, Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial told Fox Business.
"A tax return should be treated like any income a student makes and can be considered in an overall budget to use toward financial goals," de Baca told Fox Business.
Students should use the money to pay off high-interest debt, according to the article.
"Using a tax refund to pay down debt can be a good way to get the most for your money," Gerri Detweiller, personal finance expert for Credit.com told Fox Business.
Unexpected costs can come at any time, experts warn in the article. Students should always have an emergency fund set aside in case of emergencies.
"If your car breaks down, for example, or a roommate skips out without paying her share of the utilities, your emergency savings account can mean the difference between making it to class or not, or keeping the utilities on," Kimberly Palmer, author of Generation Earn, told Fox Business.
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Wonderful article! I loved the suggestion that students should use their tax returns to pay off high-interest debts, which is truly the best way to get the most out of their money. Of course, if a student is still being claimed as a dependent by More..
Here's the problem with this argument. Students rarely get large tax returns because they are usually claimed as dependents still by their parents, even though they are over 18. I've watched many a sad college kid call Mom or Dad & be More..
This is very good advice for students. It would be so easy to just blow it on un-necessary things and have nothing to show for it later. Anytime students can reduce the debt they already have by paying it down with their income tax return is a step More..