The Best Money Moves for August 2021

The Best Money Moves for August 2021

Kenadi Silcox   Mon, August 2, 2021

It feels like the summer just began, and yet it’s already starting to come to a close as August leads us into another back-to-school season.

The price of new backpacks, notebooks and sneakers — not to mention extracurriculars — can put a strain on many families’ budgets. And as we head back to “reality” after post-pandemic vacations and perhaps less-than-frugal spending, you’re certainly not alone if you’ve started wincing with every swipe of your credit card.

But there are tax savings to be had and another child tax credit payment on the horizon to help ease parents’ burden. We’ll walk you through both, along with other important money moves for this month. Here’s what you need to know in August:

1. Plan back-to-school shopping around tax-free holidays

The price of back-to-school supplies is expected to be at an all-time high this year, so there’s no better time to take care of one of the most costly annual to-dos than during your state’s tax-free shopping holiday.

Every year around this time, select states offer “tax holidays” that allow shoppers to buy school supplies without having to pay any sales tax. This year, 15 states have some sort of back-to-school related tax holiday during the month of August.   https://money.com/sales-tax-holiday-back-to-school-2/

Depending on where you live, you can save between 4% and 7% without having to pay state sales tax. The savings will be more in places that include local sales taxes in the shopping holiday.

The National Retail Federation estimates families will spend an average $849 on back-to-school shopping this year. But what counts as school supplies can vary by state, and some states may offer the tax break on items other than traditional school supplies like notebooks and calculators.

Shoppers in states like New Mexico or Missouri can make tax-free purchases on clothes, shoes, and computers as well. Be sure to check the specific dates, price limit and products available for the discount in your own state to avoid any surprises at the checkout counter.   https://www.taxadmin.org/2021-sales-tax-holiday

2. Unenroll from future child tax credit payments

The second of six monthly child tax credit payments will deposit into parents’ bank accounts on Aug. 13, injecting up to $300 per child into millions of peoples’ budgets. Most parents shouldn’t need to take any action, but if you want to opt out of monthly payments or update your information, take note of these dates:

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https://money.yahoo.com/best-money-moves-august-2021-182410148.html