News Release
Contact Information|
FOR IMMEDIATE RELEASE June 17, 2003 |
Contact Rebecca Reid at 202-342-2922 |
Refund Review: A Clean Start after Your Tax Refund
ACEC National Chairperson Susan Molinari Promotes Tools for Successful Budgeting
WASHINGTON, D.C. (April 17, 2003) – At last, April 15 has come and gone. For many, this means the tax return has been filed and an income tax refund is being eagerly awaited. If you’re among those who are hoping the refund check arrives before the next bill, it may be time to take stock and reevaluate your financial picture.
According to Susan Molinari, National Chairperson of Americans for Consumer Education and Competition (ACEC), an advocacy group that fosters consumer education and financial literacy, “The best way to do this is to develop a realistic budget, target a certain amount to be saved, and then track your money.”
Despite this common sense approach, it’s obvious that far too many people aren’t adequately prepared to handle their finances. A national survey revealed that young adults are the fastest growing and largest category of bankruptcies in the U.S. In addition, figures from the U.S. Treasury Department show that home foreclosures are now at their highest in 30 years, and people are saving less than 3 percent of their paychecks, down from 7 ½ percent in the ‘80s.
Molinari, a former Congresswoman who served on the House Budget and Education Committee, suggests that now – post tax-time – is a good time to focus on making a clean budgetary start. “At this point, people have been forced to take a long, hard look at their finances, and have the clearest picture of where they are and where they need to be,” said Molinari.
When it comes to developing a budget, and saving and tracking money, ACEC counsels that one of the best tools to accomplish these goals is through the prudent usage of a debit card.
Debit cards provide a useful way to help people stay on track budget-wise. Since purchases are paid directly from a checking account, a person can only spend what he or she has; debts aren’t accumulated that have to be repaid later.
That’s what makes the debit card such a useful budgeting tool. Just as a person would when he or she writes a check, debit card purchases are tracked in a checkbook register. There’s an immediate record of what’s been spent, and how much money is left. By keeping this daily record, debit cards make consumers much more conscious of how much they’ve bought and what it was spent on. Impulse buys tend to be inhibited because a person knows that once the money is spent, it’s gone.
In addition, since the debit card is tied to a person’s checking account, it helps enforce the daily routine of tracking where and how money is spent. Especially for someone who is seeking a fresh start to better manage money, this day-to-day discipline provides the groundwork to instill sound budgeting habits over a lifetime.
”If April 15 has made you rethink your financial goals,” advised Molinari. “remember to focus on a realistic budget, set aside a percentage of your salary, and track your money. And debit cards are a good way to enforce those goals.”
ACEC is one of the nation’s leaders in the pursuit of financial literacy for America’s youth and is an advocate of consumer education and competition in the marketplace. ACEC has spearheaded financial literacy efforts in twelve states and was a leading proponent of the “No Child Left Behind” act passed by Congress and signed by President Bush in 2002. The new law provides states with funds to establish financial literacy programs in schools. For more information on ACEC, log on to its website at www.acecusa.org.