Each year my husband and I claim zero dependents when we are working and let our employer hold back as much money in taxes as they can. We do this because up until now we have be absolutely horrible at saving money on our own. Our tax documents have started to come in and we are excited to find out what kind of refund we will be getting this year.
People do lots of things with their refunds like putting a down payment on a car or a house, going on vacation, and buying the newest electronic gadgets. We have decided this year to be a little more responsible with our refund, by paying down some of our enormous debt and paying some of our bills like rent and insurance in advance. Also we want to invest in our children’s futures and their childhood.
We are undecided at this point if we want to start just a regular savings account for each of them or if we want to start a college savings account. The benefit of the college savings accounts available now is that we could lock in a college tuition at today's rates instead of allowing inflation to make the cost of their education cost more, when they decide what they want to be. The downside is you basically lock your children into going to college in a specific state. If we were to just simply start them a savings account at this point we would be insuring that they can do the extra-curricular activities that they may want to take part in as they grow up and are deciding what they want to be.
As I was growing up, my parents made sure that I could do the things that interested me, such as ballet, tap dancing, aerobics, art classes, be in the school band, run track and go to summer camps. There were a lot of other kids in school with me that were not that fortunate, and I remember seeing them suffer because of it. They were ridiculed because their parents could not pay for them to do whatever they wanted, and felt left out because their family couldn't afford to send them away to summer camp. So I want to make sure that, if possible, my children don't have to worry about something as trivial as money while they are growing up, but I would also like to teach them the value of the dollar at the same time Kids should have the opportunity to be kids, and to have fun and learn what interests them. With that being said I do not intend to spoil my children and let them have all the latest greatest toys, but if they want to try something new, like a new sport or artistic endeavor I hope to be able to let them at least try it out. So my plan is to start a savings account for each of my children and when they are old enough let them know that each endeavor costs something and that they each have their own fund to use to try out each new thing.
As far as investing in their "childhood," we want to go on a family vacation this year. Nothing fancy, just a long weekend to the next state down. There is an awesome zoo and a theme park, based on trains, that I know at least my son would love. I have actually been planning this vacation for some time now and I think it will be nice to be able to go somewhere for even just 4 days and spend time together as a family, without having to worry about day to day things like cleaning house and running errands.
The last time we went on a family vacation my son was about 16 months old and we went to the beach for 5 days. It was nice to get away, but we really didn't do the necessary research to see what activities there were, and how much those things might cost, and we spent most of our trip trying to figure out something to do and where we were going to eat next. This time I plan on being more organized and actually laying out a plan of places to visit and sites to see, and I am hoping it will be more relaxing and enjoyable.
What plans do you have for your tax refund this year? Will you invest, pay down debt, or simply splurge?
People do lots of things with their refunds like putting a down payment on a car or a house, going on vacation, and buying the newest electronic gadgets. We have decided this year to be a little more responsible with our refund, by paying down some of our enormous debt and paying some of our bills like rent and insurance in advance. Also we want to invest in our children’s futures and their childhood.
We are undecided at this point if we want to start just a regular savings account for each of them or if we want to start a college savings account. The benefit of the college savings accounts available now is that we could lock in a college tuition at today's rates instead of allowing inflation to make the cost of their education cost more, when they decide what they want to be. The downside is you basically lock your children into going to college in a specific state. If we were to just simply start them a savings account at this point we would be insuring that they can do the extra-curricular activities that they may want to take part in as they grow up and are deciding what they want to be.
As I was growing up, my parents made sure that I could do the things that interested me, such as ballet, tap dancing, aerobics, art classes, be in the school band, run track and go to summer camps. There were a lot of other kids in school with me that were not that fortunate, and I remember seeing them suffer because of it. They were ridiculed because their parents could not pay for them to do whatever they wanted, and felt left out because their family couldn't afford to send them away to summer camp. So I want to make sure that, if possible, my children don't have to worry about something as trivial as money while they are growing up, but I would also like to teach them the value of the dollar at the same time Kids should have the opportunity to be kids, and to have fun and learn what interests them. With that being said I do not intend to spoil my children and let them have all the latest greatest toys, but if they want to try something new, like a new sport or artistic endeavor I hope to be able to let them at least try it out. So my plan is to start a savings account for each of my children and when they are old enough let them know that each endeavor costs something and that they each have their own fund to use to try out each new thing.
As far as investing in their "childhood," we want to go on a family vacation this year. Nothing fancy, just a long weekend to the next state down. There is an awesome zoo and a theme park, based on trains, that I know at least my son would love. I have actually been planning this vacation for some time now and I think it will be nice to be able to go somewhere for even just 4 days and spend time together as a family, without having to worry about day to day things like cleaning house and running errands.
The last time we went on a family vacation my son was about 16 months old and we went to the beach for 5 days. It was nice to get away, but we really didn't do the necessary research to see what activities there were, and how much those things might cost, and we spent most of our trip trying to figure out something to do and where we were going to eat next. This time I plan on being more organized and actually laying out a plan of places to visit and sites to see, and I am hoping it will be more relaxing and enjoyable.
What plans do you have for your tax refund this year? Will you invest, pay down debt, or simply splurge?
Well I for one am taking care of debt I have fines that need to be paid and a lisence to get lol so thats number one number to Is buying what I can for the newest addtion this year and third We will be stashing money and paying rent for at least 6 months (hopefully) So I think what you guys are doing is also a great plan that is our plan for next year Bubba already has a small account going but I will be adding to that this years and Jolene next year :o)
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