5 Powerful Ways To Use Your Year-End Bonus

Core Insights - American firms provided an average year-end bonus of $2,503 in 2024, reflecting a 2% increase from the previous year [1][2] Financial Strategies - Utilizing a year-end bonus to eliminate high-interest debt is highly recommended, especially given the average credit card interest rate of nearly 22%, which can significantly impact financial stability [4] - For individuals without debt, using the bonus for tax-related purposes, such as contributing to retirement accounts like Traditional IRA or Roth IRA, can enhance future financial security [5][6] - Opening a high-yield savings account is suggested for those uncertain about immediate use of their bonus, as these accounts typically offer better interest rates compared to traditional banks [7]