If you got $1,000 unexpectedly, what would you do?
We visited the Pennsylvania Farm Show to ask community members how they’d spend unexpected cash. Ranging from paying for textbooks to donating it to a favorite charity, their answers were great examples of how to responsibly use a mini-windfall.
If you find yourself with extra money, take some time to think about how to best make it work for you.
If you’re working to pay down debt, make a list of all the debts you owe, their balances, and interest rates. Then decide if the snowball or avalanche method will work best for you. The snowball method focuses on paying off the debt with the lowest balance first and building your way to bigger savings. The avalanche method focuses on paying off debt with the highest interest rate first so that you can save the most money on interest in the long run. Your individual circumstances will determine which option works best for you.
If you’re looking to build up your savings or prepare for your child’s future, check out our list of savings account options, including a special rate for youth up to age 18. Choosing the right account can help you meet your goals faster, whether you’re interested in building an emergency fund or saving for a dream vacation.
Last, but not least, donating to charity is a great way to give back to the community when you find yourself with extra money. Before you donate, check out our tips for researching a charity to make sure your money does the most good possible.