Make Smart Use of Your Tax Refund

Question

“I recently filed my tax return and received a refund. What would you recommend I do with it?” — Nate from Oswego, NY

Answer

If you’ve already gotten your refund back from Uncle Sam, there are couple ways you can make the most of that refund:

Save for an emergency. It’s always good to save for a rainy day. With a savings account, you won’t have to worry if something comes up like an unexpected illness or injury, car repair, or job loss. One in five families struggle to pay medical bills. Payday loans are expensive and borrowing money from family and friends is not easy either. Knowing that you saved the money to protect yourself can start now with your tax refund.

Even better, children with savings accounts in their names are six times more likely to go to college than those without these accounts.

Put yourself on the path to a better job by learning something new. Use your refund to help you get a new job or a promotion. You could use your refund for job training, or get your GED or professional degree. When you have more skills, you are more likely to get a new or better job.

Improve your health. If you have been meaning to get healthier, you could use your refund to make an appointment with a doctor for you and your family and stock up on healthy foods. Now is your chance to take charge of your family’s health, as it could make all the difference later on. You can even mix and match the ideas that work best for you and your family, including a small reward for yourself for making the right choice. Find more ideas for making the most of your refund here.

Whether you get a refund this year or not, by using free services like MyFreeTaxes you can save money that you would have spent paying someone to file your taxes.

Thanks for your question!