WAYS TO SPEND CHILD TAX CREDITS, CONTINUED
However, if you put your money into a high-yield savings account, you’ll earn more interest.
Specifically, a high-yield account can pay 20 to 25 times more in interest rates versus a traditional savings account.
Last but not least, if your financial situation is stable without the tax credit payments, then it might make sense to invest it for the future.
Assuming you’re saving up for your child’s college tuition or something that’s going to positively impact him or her in the future, you can try investing in a fund so it potentially grows down the line.
But keep in mind, as with any investment you’re never guaranteed to make a profit. In fact – the value of your assets can even fall if you’re not careful.
But choosing an index fund isn’t a bad way to start, as these are seen as safer bets when compared to individual stocks.