Post Falls family using child tax credit to invest in their children’s future
POST FALLS, Idaho. — More than 35 million Americans now have some extra cash thanks to the new Child Tax Credit payments signed by President Joe Biden.
Families who are eligible can receive up to $250 per month for children between the ages of six to 17 and $300 per month for those under six years old.
There are times where we all could use a helping hand.
“This has definitely highlighted that life is transitory. We don’t know how much time we have left, so we’re just trying to make the most of everything,” said David Swoboda.
Swoboda has seen the impacts this pandemic has had firsthand.
“That’s honestly been the biggest change for us as a family, is the risk of potentially bringing something home from work,” said Swoboda.
However, when it comes to the financial side of things, Swoboda considers himself lucky.
“This was extra money we didn’t necessarily need, and because it’s temporary, we didn’t want to make any lifestyle adjustments based on a temporary income of money,” he said.
Starting July 15, Swoboda and 35 million other Americans received their first Child Tax Credit payment. For the next six months, he’ll receive two $300 payments for two of his kids. They’ll receive payments for their 3-month-old daughter at the end of the year.
“We tried to look at different ways to invest it that would be beneficial. If it was money from the government for our kids, we wanted to figure out a way that we could invest it for them,” said Swoboda.
After doing their research, Swoboda and his wife Mikyl decided to open up a UGMA account, also known as the Uniform Gift Minors Act, for each of their kids.
“It’s a brokerage account that you can invest in stocks for children. For people under age 18, you’re the trustee of the fund until they reach 18 and then the money becomes theirs,” Swoboda said.
It’s an investment Swoboda and his wife said is worthwhile.
“Our kids mean everything to us,” said Swoboda.
RELATED: Is the new child tax credit helping your family? How so?
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