SCOTT COUNTY, Ky. (LEX 18) — As prices at the pump and in-stores stay up, more households may be wondering, what are some of the best ways to use this year's tax refund? One Georgetown mom is speaking about her family's plans.
Samantha Back, mother of two, says she and her family have felt the brunt of inflation, especially with one household income.
"When it started going up, we were used to a certain amount. I’ve gone over almost every time since."
She says she and her husband got the advanced child tax credits and now aren't sure what to expect on this year's tax refund.
The couple has around $90,000 of student loan debt between them. That's down from more than $126,000. They usually use refunds to pay down the debt. Their philosophy is, "Let’s just keep staying on that so we can get ourselves to where we're not in the hole,” says Back.
One Georgetown financial advisor has guidance on how families should consider using their tax refunds.
Financial Advisor, Jeff Sheppard with Family Wealth Group, says, “One of the best things to do with [your tax refund] is apply that to a bad debt."
While most families may want to use their refunds for the household, Sheppard advises that if you can, it's important to avoid having to pay any high interest on debt, especially credit cards.
"As hard as it is to go ahead and use those extra dollars that you get to knock that debt out, we think in a lot of cases in most cases, it is definitely the way to go,” says Sheppard.
He also suggests adding money to emergency funds. Sheppard advises investing in a Roth IRA if you can. Contributions can be accessed at any age, and it’s a good way to make money tax-free.
Ultimately, Samantha Back says she knows families are struggling -- battling high prices every day.
"People are gonna have to find work and do side jobs and not be able to spend as much time at home with their kids and their husbands and wives, and it's stressful,” Back said.