Financial Expert, Rachel Langlois with Cyprus Credit Union says tax season is a great time for starting an emergency savings account. The IRS predicts that 70% of filers will receive a refund, with the average being $2,895. But 90% of those receiving refunds will have spent that money within 21 days of receiving it. This is money you are not “missing” so it’s important to use it wisely and not spend it frivolously. Starting a savings accounts is a great way to invest this money for your future.
Rachel says around 54% of Americans don't have an emergency fund to get them through 3 months of living expenses. The goal of an emergency savings account is to have at least 6months worth of savings and at minimum 3 months of saving should something happen to prevent you or your family from pulling in an income.
Some other great things to do with your tax refund if you already have an emergency savings account is to pay down high-interest debt, fund your retirement, and invest in a 529 savings plan for your kid's college education. If you have questions you can reach out to Cyprus Credit Union by visiting Cypruscu.com