Your tax refund check can be an instrument of positive change, or just another wasted opportunity. Here is what you should do with it. Are you ready for a nice, fat tax refund check? Before you get excited, soberly think about how easy it is to waste that money foolishly. Extra money makes people splurge, even while they imagine they’re saving it. How do you make sure this year’s windfall makes your life better over the long haul? Try these nine ways:

1. Pay down high-interest debts
2. Pay off small debts
3. Fatten your emergency fund
4. Save for retirement
5. Save for college
6. Invest in your productivity
7. Hire a career coach
8. Contribute to charity
9. Start a business

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If you are eligible, a home office deduction can save you big bucks at tax time. If you’re not, claiming it can get your in big trouble. But before you sit down to take care of business, make sure you understand one key way to reduce your tax bill: the home office deduction. Here is what you need to know.

1. Is it exclusive space?
2. Is it the principle space for your business?
3. Figure out the deduction based on the size of your home
4. There is a new simpler way to claim the deduction
5. Don’t be shy, but do be careful

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As you file your taxes, remember that your tax refund will likely be delayed based on the recent government shutdown, that is still unresolved. Meanwhile, since there will probably be a delay, take time to think about the most useful way to use your tax refund. Most experts, recommend to spend 1/3, save 1/3 and to pay a bill with 1/3. Be thoughtful and wise about your decision, this is usually the only time you can make a sudden change in your financial outlook. Your annual bonus is also another opportunity for your personal finances. Bottom line, make your money work for you and invest with CD’s, Roth IRA’s or Money Market funds.

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A key difference is that it’s simpler to unlock a credit lock than it is to “thaw” a credit freeze. When you freeze your credit at the three credit reporting bureaus – Equifax, Experian and Transunion – you restrict access to your credit report so most lenders can’t see your information and until you unfreeze it. To be fully protected, you must lock all three agencies who will provide you with personal pin numbers.

In a credit lock, you can do it yourself online with each of your credit cards at will. Decide which feature works best for you. Credit freezes and credit locks are both FREE to us all now. Credit freezes are free based on recent legislation prompted by the breach at Equifax a few years ago.

Whether you choose to lock or freeze your credit you will place another barrier to prevent credit fraud, which can take months or years to resolve.

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Nixing these payments will stretch your budget during a period of unemployment. Sometimes, unemployment can strike out of the blue. Everything seems fine one day. And the next day, you’re out pounding the pavement looking for work. While unemployment insurance and an emergency fund can make a big difference when it comes to financially surviving a period of joblessness, another key step in ensuring that you make it through to your next job is cutting back on some of your expenses. Here are six purchases on which you should cut back immediately if you lose your job:

1. Netflix, Spotify, and other streaming services
2. Dining out
3. Services you can do yourself (laundry service, house cleaning)
4. Cable television
5. Gym memberships and club memberships
6. Small treats (coffee at the coffee house, etc.)

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Each of us has our own personal finance success stories. You may have tools or ideas that you find particularly helpful and made the difference to your personal financial success. If you are saving for emergencies, retirement, college or a new home. Share your success stories with us. You can send the details in the comments section at the end of each blog entry. We promise we will not include your name or the city that you reside. Share it with us and we will share it with our readers!

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What accounts in collections do to your credit score:

• 30 days late: 60-110 points
• Debt settlement: 45-125 points
• Foreclosure: 85-160 points
• Bankruptcy: 130-240 points
• Maxed-out credit card: 10-45 points

Because unpaid bills will devastate your credit score, logic would suggest that paying them off would send it in the opposite direction. But not all logical when it comes to credit scores. Check you credit report to see if the items still appear on your report. If they do, pay them off. If they do not appear, they are probably seven years old and have dropped off your credit report. If a creditor (or collector) calls you about paying a bill that is (7) years old DO NOT RESPOND. If you do respond, you re-set the clock to day (1) and are responsible for the entire debt, plus interest and penalties.

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Paying off old debts may or may not be the answer. Your credit history is important to your overall financial health for at least three reasons. First and foremost, a bad score means higher rates when you borrow. Second, because a bad credit history can also impact other expenses, like your car insurance. And finally, lousy credit could also impact your ability to find work. Is this fair? Debatable. But like it or not, it’s a fact. So it literally pays to keep track of your credit history and score and keep them in the best possible shape.

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Your tax refund check can be an instrument of positive change, or just another wasted opportunity. Here is what you should do with it:

• Pay down high-interest debts
• Pay off small debts
• Fatten your emergency fund
• Save for retirement
• Save for college
• Hire a career coach
• Contribute to charity
• Start a business
• Invest in your productivity
  • Get more education – workshops, buy equipment, clothing

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The 2020 graduating class will be the first in the state of Iowa to have financial literacy as a course requirement in high school. In 2018, Governor Kim Reynolds passed a bill into law. Iowa Department of Education Director Ryan Wise said he was excited to see the bill passed last year. “I think it is a great effort that will really improve the financial literacy skills of our young people.” Johnston High School Business Teacher Lexi Schafer said high school is the perfect time for students to understand how to budget money. High school is the first time where they start getting first jobs, their first car, and planning for college. In the classroom students learn about budgeting a checking account, savings account, investing for the future and purchasing large items like a car. They also learned about “delayed gratification.” The curriculum includes learning about online banking and banking apps to help save money. The students like having financial security and the ability to do things that are fun. The feedback the students, parents, and the teachers receive is continually positive. Everyone is on board that financial literacy is a necessity in our high schools.

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