In just a few short days, you might find that your bank account is a little larger if you have children. The new child tax credit is set to be distributed on July 15, which is designed to help families care for their children during these stressful times. Although it will be nice to have the extra money in the bank, you will find that it can be lucrative to spend this money in ways that will benefit the home, opposed to just frivolous spending. These ten ideas can help your household thrive and then some with the extra money you will receive each month.
1. Put it in Savings
Your savings account can do a lot of good for you and your family. If you have a savings account that offers a good interest rate, then this might be the best place to keep your money. This will allow the excess money you receive to grow on a monthly basis, which can actually improve on your financial situation more than just the extras you are receiving. If you aren’t in need of the money as a family, then you might set up a savings account for each of your children. This will allow the money that you are receiving for them to go directly to them in the future.
2. 529 Plan
College time will be here before you know it, which is why a 529 Plan is probably a good idea for your family. This plan will allow you to make arrangements for your child’s college without having to worry about your child being forced to pay excess taxes on their money. A 529 plan actually will allow your child to withdraw the money when they need it without having to worry about paying taxes on it, like many other plans require. There are many different ways you can get a 529 Plan, so make sure you do your research before you put your child tax credit money into it.
3. Invest It
If you’re not already investing your money, then now is the perfect time to start. Investing your money can be challenging and might require you to hire a professional to help out. However, once you get in the groove, you can watch your money grow in new and exciting ways. This is a great way to help your household’s finances while allowing you to hold onto to extra money that can be used for your children’s schooling or other expenses in the future. Of course, you should be careful with every investment you make as some opportunities won’t lead to growth.
4. Utilize it For Your Child’s Care
Children are expensive, which is one of the primary reasons this tax credit is being offered. During the pandemic, many families suffered and struggled to get the items they needed for their children. So, now is the perfect time to get your children the things they need. Your child tax credit can be used for diapers, formula, food, clothing, learning supplies, and even toys. Give your children the things that they need to have a great childhood and the items they need to find success as they grow into adults. You can even use the money to help offset the price of daycare, private schools, and so on.
5. Sign Up For Activities
If you’ve been holding back on activities due to finances, then now is the perfect time to get your child up and ready to go. There are many great activities that can help with your child’s self-confidence, fitness, educational skills, and more. The money you receive monthly can get your child signed up for at least one activity, depending on your schedule. From there, you can purchase the item necessary for the activity as well as any travel expenses that might incur. If your child isn’t interested in an activity then you might find that it is easier to swap activities with the extra money, as well. There are also online activities and classes that you can look into if you’re not comfortable with your child out in public without a vaccination. Getting your child into activities is also great for the economy, so you will definitely be utilizing your credit for the betterment of your local and national economics.
6. Improve Diet
A lot of families have to skip out on ordering the good stuff when it comes to groceries. This can really harm your child’s growth while teaching them poor eating habits. With the new tax credit money coming in, you should have a fair amount of grocery money sitting around in your bank account. This can help you choose a wide variety of healthy options while allowing you to not fret over the amount of money you’re spending on your grocery bill. You might also consider looking into a meal service that will send you everything you need for a healthy meal designed to make your entire family happy while allowing you to budget time. The excess money will also allow you to pay for grocery deliveries, which can also be incredibly helpful if you’re short on time or simply don’t want to take your children in a store during a pandemic.
7. Pay Off Debt
When polled, many parents said that they would be using their child tax credit to pay off debt. This is also a wise move, especially with so many taking on extra debt during the pandemic. From high credit card totals to student loans, this extra money can help your finances go a lot further. By paying off the debt, you’ll also be able to put back more money for your children in the near future, since you won’t have to stress about the debt you have. This can help ease stress while allowing your family to live more comfortably when the tax credit ends.
8. Emergency Fund
One thing that a lot of people lack is an emergency fund. This money is used for emergency repairs on a vehicle or home. It is also used for medical expenses that might suddenly incur due to accident or illness. The money can also be set aside for emergency travel in case of the medical emergency of a family member or a natural disaster that requires you to move. The extra money you receive with your tax credit is a great option that will help you get the fund built up without forcing you to go without.
9. Do Something Fun
It has been a rough year. Last year, was even rougher. So, when you start getting your child tax credit in, you might actually consider using the money to do something fun. With the money you’ll receive each month, you should be able to easily afford trips to museums, zoos, science centers and more. You might also consider purchasing memberships to these entertainment facilities, so you don’t have to worry about paying for entry for a full year. Usually, the price of membership is almost the same as the cost of one time entry. Of course, you can also plan on a big vacation with the money you’re getting. It might take a little saving, but you’ll certainly find it easier to do with the extra money.
10. Upgrade Technology
Currently, we’re living in a world of uncertainty. We don’t know if we’re going to be sending kids to school or helping them with their studies online. We also don’t know if we will be working at home for another year or heading into an office. So, you might utilize your child tax credit to update your home’s gadgets. Consider purchasing computers, webcams, and anything else that you think is going to make it easier for your children to be successful in school. This will help add some relief to your life as you won’t have to worry about problems with technology causing you to spend money spontaneously. You might also consider investing in anti-virus software and learning programs to help children grow.
The child tax credit is designed to bring some relief to your life. These ten tips should help you utilize your money so you can easily use the credit to help improve your quality of life as we recover from all of the losses the pandemic brought to the table. With any luck, you will find yourself ready to take on the world again.