FINANCE
HOW SHOULD YOU USE YOUR CHILD TAX CREDIT? WRITTEN BY BRENNAN HALLOCK
A
s a parent of two children with a third on his way, I recently received my share of the Parent Child Tax Credit enacted this spring through the American Rescue Plan. Seeing the numbers in my bank account, though, I asked myself, What should I do with this? Many other parents are asking themselves the same thing. There are parents receiving this money for whom it truly is a rescue from a dire financial situation. But there are also those for whom the money is helpful, but they don’t have to spend it on food or rent. If you are one of those parents, what should you do with this money coming into your account?
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SIMPLYkc MAGAZINE
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AUGUST 2021
1. Use it for your basic needs: The purpose of this plan isn’t to give people extra money, it is to keep struggling families financially stable. And there are many families still struggling because of unemployment, underemployment, sickness, and other reasons. “The IRS goal by initiating this plan is to pay out the money in advance to help families get funds faster. It isn’t necessarily intended to help people get ahead; it is intended to keep them afloat for those that desperately need it,” explains Marc Shaffer, CFP, AIF, EA for Searcy Financial Services, Inc. in Overland Park, Kansas. “For those
