Income tax refunds present a pain-free opportunity to save, pay off debt or invest.

What do you think of when you learn you’re getting an income tax refund? It’s time to splurge on yourself? Treat a loved one to something special? There are no right or wrong ways to use your refund but there are some things you can do with the money to strengthen your financial situation. Here are three pain-free money moves that your future self will be glad you made.

Save your income tax refund

An income tax refund can help shore up your savings and there are lots of reasons to save—from a down payment on a house or car to education and vacations. CDs (Certificates of Deposit) keep your money safe, earn more interest than regular savings accounts and are ideal for money you don’t need to use right away.

Pay off debt

Chip away on any kind of debt—credit card, buy now/pay later plans, medical debt, personal loans and more—by using your tax refund. Every dollar paid off means less interest you’ll pay.

Invest your money

Many people want to invest but don’t know where to start. One way to get started is by using part or all of a tax refund. As a Consumers member, you have access to CFS* financial investment advisors who can help you find the right investments for your needs and goals.

The way you use your tax refund doesn’t have to be all or nothing. You could split up the funds between saving, paying off debt, investing and yes, even splurging a little. Being mindful about the way you use your income tax refund helps you secure a better financial future.

 

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