Shopping for fun electronics, cell phones and clothing is not the only way teens can use federal rebate checks. There are many options high school students who have after school or weekend jobs to use their money. Here are tax refund tips for teenagers that can be more useful during and after high school.
Cover Prom Expenses With a Tax Refund
While all teenagers may not be able to pay for all of their prom expenses, working teens can contribute toward this event. Teens can use federal rebate checks to reduce the overall prom related expenses that their parents have to pay. All of the money from a tax refund does not have to be spent on a high school prom. Teenagers can still use a portion of their federal rebate checks to pay for prom clothing, accessories, photo packages or transportation.
Buy Bank CDs for Future College Expenses With Tax Refund Money
Money from personal savings, loans and grants can cover tuition for some teens that plan on attending college after high school. There are still additional college expenses that these funding sources may not cover. Teenagers benefit from using tax refund money for books, supplies, lodging and related college expenses.
By receiving federal rebate checks, teens have an opportunity to be proactive toward their education funding. Junior and senior high school students can purchase 6- to 9-month CDs with interest rates over 3% and grow money from their tax refund for future college expenses. Teenagers may need parental assistance for purchasing CDs at financial institutions if they have not reached a certain age.
Spend Federal Rebate Checks on a Used Car and Auto Insurance
Teenagers who have obtained a valid driver’s license can use their tax refund money to purchase a used car and auto insurance. A car with auto insurance that requires monthly payments is one way that teens can learn responsibility and build credit.
Working automobiles are more valuable to some teenagers than clothing, electronics and other items purchased with money from federal rebate checks. A car purchase also makes it easier for parents to save money while guiding their child into adulthood.
