‘People need to be smart’; an expert weighs in on the best way to use the expanded child tax credit

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HIGH POINT, N.C. (WGHP) — As part of the American Rescue Plan, the IRS will start sending payments to more than 30 million Americans on July 15. These payments are advances on the federal expanded child tax credit. At this point, the payments are expected to continue every month through December 2021. The amount will vary depending on your income and family size.

So what’s the best way to use that money?

FOX8 asked Patrick Rush, a certified financial planner and CEO of Triad Financial Advisors.

With any change in income, look at your budget. Don’t have one? That’s first on your to-do list.

Rush said, “This is an unprecedented amount of fiscal stimulus that we’ve seen. It’s a great opportunity to be investing in the market and I think people need to be smart with this money that we’re getting.”

Also look at your debt and savings.

Rush advises, “Make sure you are paying down debt and increasing that emergency reserve. Being prudent with your investment strategy which means don’t get caught up with the ups and downs of the market conditions. We know that markets work over-time and we want to stay true to that.”

You should enough in savings to cover three months of living expenses.

Then consider investments. Rush explains, “Stay away from speculative investments. We’re all focused on long term investments so we’re not jumping into bitcoin or anything like that.”

For more information about the advanced child tax credit payments, visit irs.gov.

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