Make the most out of your money by using your tax return in one of the following ways!

Tax season is almost over, hooray! Hopefully you’re breathing a sigh of relief and looking forward to receiving your refund. If you’re getting some money back this tax season, you’re probably trying to decide how to use it. Well, we have some smart suggestions for you!  

Smart Ways to Use Your Tax Refund

March 28, 2017

If you're getting a tax refund this year, make the most out of your money by using it in one of these 4 ways!

Tax season is almost over, hooray! Hopefully you’re breathing a sigh of relief and looking forward to receiving your refund. If you’re getting some money back this tax season, you’re probably trying to decide how to use it. Well, we have some smart suggestions for you!

If you’re still working on your tax paperwork, here are 3 ways to make tax time simpler.

 

Put it into savings


You knew this one was going to be on the list! If you don’t have any major expenses to use your refund on, stuff that money into your savings. Whether you’re putting it towards your emergency fund, vacation savings or general savings account, paying yourself first is a great mindset for when you have some extra money.

 

Pay down debt


Few things feel as empowering as paying down debt. Take your tax refund and make a big payment on your credit card, student loans, mortgage or auto loan. This will help lower your debt load, while also saving you money by shaving off some time on the loan. Look at all of your debt, and put the payment on the one with the highest Annual Percentage Rate (APR) to save the most in the long run.

 

Start a college fund


Do you have young children? Look into using your tax refund to start a college fund for them. The earlier you start saving, the better off your finances will be once the big day comes. Preparation is key when it comes to financing college, so look into opening a 529 College Savings Plan or Coverdell Education Savings Account.

 

Open a certificate


Would you like to see your tax refund money grow over time? Use it to open a Certificate! Certificates are a type of savings vehicle that also acts as an investment. Money is locked into an account for a pre-determined length of time with little to no accessibility. Certificates generally have a higher dividend rate than normal Savings Accounts, and the dividend rate is higher the longer the term of the Certificate.

Discover how much your tax refund could earn in a Certificate with this calculator.

Do you have another smart way to use your tax refund? Let us know in a comment below!

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