David Hicks Urges Families to Split 11% Bigger Tax Refunds for May Costs

1 articles · Updated · KOB 4 · May 19

May’s cluster of expenses — graduations, end-of-school events, Mother’s Day, birthdays, summer camps and travel — can make it the “December of spring,” Hicks said, with gasoline at a 4-year high adding pressure.
Hicks’ main advice is to treat May like a holiday month and budget ahead so families do not enter summer carrying new debt before seasonal costs pile up.
Tax refunds are up 11% from last year, he said, helped by lower taxes on tips, overtime and some Social Security income, giving households extra cash to manage the month.
His “rule of thirds” calls for using refund money for past debt, future savings and current enjoyment, while also building an emergency fund in high-yield savings accounts paying up to 3.5%.
For longer-term planning, Hicks said families should also consider paying down credit cards charging 20% to 28% and contributing up to $7,500 to an IRA or Roth if under 50.

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