Jump to main content

Financial Education 101


If you’re like most people, when tax season rolls around, you file and then wait impatiently for your refund…which you’ve spent before the money is even in your account. How did you spend your refund? A new TV? That great vacation you’ve been wanting to take?

This year, think about doing something different with the money you get back from the government. The average tax refund last year was nearly $3,000, which is more than just a little extra spending money. Financial advisors suggest five possibilities for how to make the most of your tax refund. Check it out:

1. Pay down high interest debt. With more Americans getting further into debt, many financial advisors believe it is prudent to use your tax refund to pay off as much of your high-interest debt as possible. They advise making a list of all loans, balances and corresponding interest rates. Start by paying off the highest interest rates first and work your way from there!

2. Start an emergency cash fund. Financial advisors recommend setting up a separate account with three to six months of living expenses saved in the event of a layoff or unforeseen health problems that aren’t covered by insurance. Keep this emergency account separate from your checking and savings accounts, so as not to drain this fund for non-emergencies.

3. Invest in your retirement. If you decide to put away your refund for long-term savings, advisors recommend putting it toward your retirement by adding more to your employer’s retirement program or a traditional or Roth Individual Retirement Account (IRA) if you are unable to contribute more to your employer’s program.

4. Invest in your child's college education. After you’ve built up your own retirement account, you can turn your attention toward building your children’s or grandchildren’s college savings plans. Talk to your financial advisor about which manner best suits your situation.

5. Add to your regular mutual fund investment account. If you are already contributing the maximum amount to your retirement account, advisors recommend investing in a regular taxable mutual fund to help your money grow.


At Tendto, we tend to do everything we can to make your financial dreams come true.

Whether you're in the market for a new loan or savings account, or just need some financial advice, we're here for you. If there's anything we can do to help you achieve your financial goals, stop by and see us. We're always happy to talk things through.