Have You Thought of Doing This With Your Tax Refund Check?

The tax season is ending. If it hasn’t already, the IRS will soon send you the refund you’ve anxiously awaited. You have some big plans for it too. Maybe it’s time for a giant TV that will make your favorite movies come alive in a way you’ve only experienced with a $4 soda, $5 box of M&Ms, and a giant $7 refillable tub of popcorn.

Or, maybe, you have a more selfless idea. You’re going to take the family to visit a certain mouse at a certain amusement park in a certain state full of sunshine and beaches. Tickets are a reasonable $80 per person and if you thought the movie was expensive, just wait until you purchase food there.

But, what does your tax return have to do with music and expensive popcorn? While a TV, family vacation, or other purchase sounds like a fun way to use your tax refund, each of these is fleeting. Sure, memories last forever, but you can create memories for less than $80 a pop at an amusement park.

The TV will certainly be a remarkable sight, but one day it will be time to replace it and your money will be gone. Maybe this year, you can use your tax refund for one of these purposes.

Savings

Don’t just put your money in the bank, but think about starting an emergency fund. If an unexpected expense comes up, rather than having to use your credit card, dip into your emergency fund. You pay cash, you have no debt, and you don’t have to pay interest.

How about saving for your child’s education? College tuition rises nearly 6 percent a year according to some estimates. If you don’t save for college costs, you, or your child will have to take on expensive student loans.
Studies show that consumers aren’t saving enough for retirement. Consider starting an IRA or contributing more to your 401(k) if your company will match your contribution.

Better Yourself

Does that mean you shouldn’t spend any of your return? No, but think about investing the money instead of spending it. You could invest it in the stock market, but how about investing in yourself or your children? That could mean using it to go back to school or learning something you’ve always wanted to learn.

How About Using Your Tax Refund Check To Learn To Play Music? Sure, learning a musical instrument is fun but there are other reasons that make it an even better investment. Numerous studies have found that learning to play an instrument is to the brain what going to the gym is to the rest of your body.

Studies found that students who participate in music have lower instances of substance abuse, better attendance rates, and score 22 percent higher on English and 20 percent higher in math on standardized exams.
Maybe you’re beyond the days of standardized tests. In adults as well as children, learning music helps the brain to understand language. If one of your goals is to learn another language, learning to play a musical instrument makes that process easier. Finally, studying the arts is directly related to higher earnings.

If it’s not music, maybe it’s another hobby. Maybe you’ve always wanted to learn a certain hobby, or maybe somebody in your community is struggling and maybe your tax return check could find a use helping somebody in need.
Before heading to the nearest electronics store this year, think of what you can do with your refund that has staying power. Make it an investment instead of a purchase. Then, you will see that investment become something bigger than its original purpose.