Make the most out of your tax refund
Recent IRS data has many Americans excited to learn that the average tax refund issued this tax season is $3,263. This is a significant amount of money for most people, and for many, it’s already earmarked before it even arrives. Before spending your tax refund, we encourage you to consider your options so that you can get closer to achieving your financial goals and dreams.
The time between receiving your refund and deciding what to do with it is the “decision-free zone.” Use this time to evaluate your financial situation and money mindset. Your money mindset is best described as the set of beliefs and attitudes you have about money. These beliefs influence your decisions about saving and spending and play a significant role in your financial decisions.
If you’re in a savings mindset, consider using your tax refund to:
- Boost or start an emergency savings account
- Open a college savings plan for your child
- Pay your insurance in one lump sum (some companies offer a one-pay discount)
- Pay down high-interest debt
- Contribute to your retirement account
If you’re in a spending mindset, consider using your tax refund to:
- Start a home improvement project
- Take a vacation
- Proactively repair your home or car
- Register for a class or certification
- Donate to charity
By taking a practical approach and planning ahead, you can make the most out of your refund this tax season.
*This article was produced using content provided by our partner, GreenPathTM Financial Wellness. Visit https://www.greenpath.com/partner/EducationalSystemsFCU to access expertly-crafted financial education and resources to help with your financial matters.