Since the pandemic pushed this year’s tax deadline back to July 15, many Americans will be receiving their refund in the coming weeks.
The IRS says people are getting back an average of $2,769 this year, a slight increase from the year before.
But with the economy still struggling and unemployment numbers hovering at record highs, managing your refund wisely is more important than ever.
Here are the seven worst ways to use a 2020 tax refund.
1. Letting it rot in checking accounts
Setting your tax refund aside in an emergency fund is one of the smartest things you can do. Many financial advisers recommend keeping enough cash on hand to cover at least six months of your regular expenses.
But keep in mind: Where you stash your emergency savings matters a lot.
Don’t just leave your funds in a traditional checking account, which