GMR 174: What Will You Do With Your Advanced Child Tax Credit?

The U.S. Government this month (July 2021) has begun sending child tax credits checks for each child 17 years old and under? What will you do with the extra money? In this episode of Getting Money Right, we’re talking about what the changes to the Child Tax Credit are, why they are being offered in advance. We’ll also make some suggestions on how to make it pay off in a big way.

Show Notes

Advanced Child Tax Credit Payments

• $3,600, or $300 per month, for each qualifying dependent under 6

• $3,000, or $250 per month, for each dependent aged 6 to 17

• The payments start to phase out for individuals earning an adjusted gross income over $75,000, and married taxpayers (and widows/widowers) filing jointly earning over $150,000.

Payment Schedule:

• July 15

• August 13

• September 15

• October 15

• November 15

• December 15

How to make this gift pay off big

Taking these child tax credit paychecks and saving them would be a great way to ensure the future financial well-being of your children, as well as instill in them the value of investing early.

If your child is 5 years old investment opportunity

• $300 a month invested for 50 years earnings:

  • 6% compound interest = $1,045,209

  • 8% compound interest = $2,065,572

  • 10% compound interest = $4,109,070

If your child is 10 years old investment opportunity

• $250 a month for 50 years earnings:

  • 6% compound interest = $871,077

  • 8% compound interest = $1,721,310

  • 10% compound interest = $3,491,725

Resources

Budgeting tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com