Financial Guidance Library

Helping others achieve financial success

Financial Guidance Library

Tax Time: Ways to Use Your Refund

We don’t normally like to tell you how to spend your money. In fact, we usually tell you how to not spend your money, or we’ll often tell you about ways to use your good credit for getting a loan that can make your life better or save you money in the long run.

At tax time though, we thought we’d take a different approach. If you’ve got a windfall coming from the IRS and don’t want to watch it disappear as you spend an extra $50 or $100 here or there, we’ve got some plans that can turn your refund into lifelong memories, earn you money in the long run or both, all while spending time doing what you want to do.

Tackle one home improvement project

We’ve all got a list of things we’d like to do around the house. Maybe you’d like a deck for grilling once the winter lets up, or you’d like a more welcoming front entryway to your home, or you’d like to drag the kitchen into the twenty-first century. Talk to your spouse, your kids or whoever might enjoy what you’re planning to build. Once you come up with a plan, watch some YouTube videos to make sure it’s something you can handle, and then mark your calendar. Set times to work, and make it a family project. By the time you’ve finished, you’ll have improved the value of your home, spent time building something tangible with your family, and you won’t have to suffer through a summer without your deck.

Take a parents’ weekend

Getting an evening away from the kids can be difficult, and a weekend might seem impossible, but it doesn’t have to be that way. You’re holding a refund check from the IRS and it might be enough to ship the kids off to grandma and grandpa’s house, or pay for a couple of nights at a nearby hotel.

A parents’ weekend is a great way to invest in your future, even if it doesn’t seem like it at first. Study’s show that Americans who vacation regularly tend to be more productive. Watch how much more smoothly everything goes at work when you get back.

Encourage a gifted child

Many families find that they’d rather splurge on the kids than on themselves. Purchase an instrument, a trainer or a tutor for a child who’s shown an interest in a special activity. Talents your child can demonstrate will help him or her get scholarships, making the investment you put in today a sound one financially.

You could also put the money into their college fund. We offer several products to help your money grow such as Coverdell Education Savings or our Explorer’s Club Certificates offers a higher rate.

Lastly…save it

If you decide, after all, that you would rather save your refund for that new house or boat you’d like to buy, our Bump Your Rate 3-year certificate may be the right option. When rates rise, you get the option to raise your rate twice during the term. You can open it with as little as $500.

If you want access to your savings anytime, our high-yield PayBack Savings account may be a good option for you.

Whatever you decide to do…Create a plan for your refund and stick to it. What’s yours?