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Financial Literacy Month 2015: Why Most Money Management Experts Say Getting A Tax Refund Is Bad

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Donell Edwards, Blogger

DONED2014 SmallAbout Donell Edwards: Donell Edwards is President of CWR Media and is also founder and publisher of The College World Reporter (CWR) magazine and CWR World News & Information Service.  He is also a professional speaker, freelance writer, and entrepreneur.

 

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We’re Celebrating Financial Literacy Month

Know Your Money
Thursday – April 16, 2015

Financial Literacy Month 2015
Why Most Money Management Experts Say Getting A Tax Refund Is Bad
By Donell Edwards

About 75% of U.S. taxpayers get a tax refund each year, and the average tax refund is $3,000. Most people see their tax refunds as “free money,” or at least a cause for celebration – but most financial experts say that if you’re getting a big tax refund, that’s not entirely a good thing.

The quote above is from Bemjamin Gran in his article, Is Getting A Tax Refund A “Bad Thing?” on Quizzle.com.  Mr. Gran is among the majority who hold the view that getting a tax refund is not wise money management.  Although this is the opinion of most money managers and there is overwhelming support for following this advice, there are some who feel that getting a tax refund is not such a bad thing.

 

USA Today Tax Refund Video

 Click Here to watch the video

To provide you with information from both sides of this issue, in addition to providing you with articles supporting our position in today’s blog, we are also providing you with articles from some writers who are in favor of getting a tax refund.  We will explain in tomorrow’s blog why these arguments are not valid.

Rather than writing more about our position, we have provide the titles and links to articles for and against getting a tax refund below, and we strongly suggest that you read all of them as well as doing your own research.

 

The Pros of Getting A Tax Refund:

Five reasons why a big tax refund can be a good idea
http://usatoday30.usatoday.com/money/perfi/taxes/story/2012-03-31/tax-refunds-withholding/53887648/1

Everything You Know About Getting a Tax Refund Is Wrong
http://www.dailyfinance.com/2014/02/11/tax-refund-myths/

 

The Cons of Getting A Tax Refund:

Getting a tax refund? You’re doing it wrong
This article also includes guidance from HLN money expert Clark Howard on handling your tax refund.
http://www.hlntv.com/article/2013/04/08/taxes-getting-refund-doing-it-wrong

Why Getting a Large Tax Refund is Bad
http://freefrombroke.com/why-getting-a-large-tax-refund-is-bad/

Admit It—A Refund Feels Good
http://online.wsj.com/news/articles/SB10001424052702303772904577334051286775814

 

Here is today’s step to financial wellness from Thirty Steps to Financial Wellness developed by Money Management International:

Step 14 – Expect the Unexpected

 

EVENTS AND RESOURCE LINKS:

Hosting A Financial Literacy Month Event

2015 National Savings Forum

Financial Literacy Month Articles from Huffington Post 

The FoolProof Foundation

FoolProof Teacher

FoolProof Solo

 

If you have questions or need help we are just an email away.  Send your questions to Info@KnowYourMoneyGlobal.com

 

We Would Like To Hear From You.  Are There Any Brave Souls Out There Willing To Share?
If you would like to share with our readers how “bad” spending habits have affected you, anonymously or otherwise, for our upcoming special, “Confessions Of Spendaholics,” please send your experience to info@knowyourmoneyglobal.com.

 

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Disclaimer:  I have a Bachelor of Business Administration degree but I am not a financial adviser. However, I have acquired years of knowledge about personal money management through my life experience working through my own personal finances that allows me to share that knowledge with readers of Know Your Money. The Know Your Money Blog posts written by me are my own common sense observations and opinions and are for informational use only. Although my blog includes contributions from experienced financial professionals, please make your own financial decisions based on personal research or contact a financial adviser.

 

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