Practical Ways to Use Your Tax Refund

April 16, 2024

by Christian Phillips

Have you decided how to use your tax refund? Consider investing, saving, or paying off debt instead of impulse purchases. 
 
1.) Invest your refund.
Investing a portion or all of your refund in the stock market is risky, but investing over an extended period could produce a more significant outcome. 
  • Maybe you want a low-risk investment option. Talk with your local Frandsen banker about our specials on Certificates of Deposit. 
 
2.) Save for a House or Apartment. 
If you are planning to move and either buy or rent a new place, it's always a good idea to save your tax refund to cover your moving expenses. The housing market can be volatile and expensive, so the more money you save for a down payment, the better off you will be. 
 
  • The average tax refund in 2023 was approximately three thousand dollars. Setting money aside for a down payment can accelerate your timeline of homeownership. 
 
Perhaps you are interested in renting a new apartment. However, signing a new lease usually entails several upfront expenses, such as the first and last month’s rent (sometimes), security deposit, and application fees. Fortunately, your tax refund can help ease some of the financial pressure and enable you to concentrate on settling into your new apartment.
 
3.) Pay Down Student Loans.  
If you recently graduated from college and have student loan debt, it is advisable to prioritize paying it off. Reducing your debt burden is essential as you begin your career and take on greater responsibilities. To discuss repayment options, contact the federal loan servicers assigned to your account. 
 
4.) Purchase Something you Need. 
  • Maybe you need a new pair of prescription glasses you couldn’t afford to replace. 
  • Ensure your car stays in good condition by scheduling overdue maintenance and using your tax refund to cover the costs.
  • Dental procedures can be costly, even with dental insurance. You should schedule a visit to the dentist for any necessary dental work. Dental health is essential, so allocating a portion of your tax refund is wise. 
 
If you're looking for more ideas on how to use your 2024 tax refund, check out our previous blog post, "How Should I Spend My Tax Refund?" These timeless options can help you achieve financial stability. 
 
Maximize your return with Frandsen’s Checking and Savings Accounts. Whether you have questions about your current account or want to open a new one, contact your local banker here!

Related Posts

You are about to leave the Frandsen Bank Website.

The site you have selected is an external one located on another server. Frandsen Bank has no responsibility for any external website. It neither endorses the information, content, presentation, or accuracy, nor makes any warranties, express or implied, regarding the external site. Thank you for visiting Frandsen Bank.

Open a New Deposit Account

If you wish enroll in online banking, please click "Cancel" and navigate to the "Enroll in Online Banking" button below "Log In".

If you wish to open a new deposit account, please click "Proceed".

Thank you for banking with Frandsen Bank & Trust!

You are about to leave the Frandsen Bank Website.

The site you have selected is an external one located on another server. Frandsen Bank has no responsibility for any external website. It neither endorses the information, content, presentation, or accuracy, nor makes any warranties, express or implied, regarding the external site. Thank you for visiting Frandsen Bank.