Unless you spent it all on Jell-O shots and sunscreen last week, many of you will be receiving your tax refund soon if not already. Here are some wise ways spend your refund that don’t involve Tigerland.
1. Save it
Let’s start with the most obvious — save the money for when you need it. This sounds easy enough to most people, but beware. If you put the money into your everyday checking account, I bet you won’t end up saving it. Whether it’s an emergency account or employer sponsored savings, put it where you can’t touch it.
2. Pay off debt
Did you rack up credit card debt over the past year? What about borrowing cash from friends or family? Now is a great time to settle these accounts.
3. Renters insurance
Many of you, myself included, have probably never thought about getting insurance. Renters insurance is like the insurance your parents pay on a house to protect from theft and damage. However, renters insurance is much cheaper — expect around $14 a month in Louisiana. Buying peace of mind with your refund sounds like a great idea to me.
4. Save for Grad school/new job
Whether you’re looking forward to it or not, graduation is around the corner. If you know your plans after May 13, then save this money for new clothes for your job or for books and supplies for grad school.
5. Put it toward large purchases
Are you expecting to make a large purchase in a few years? Maybe you will need a new car when you move out the dorm, or you’ve got an eye on a house back home after graduation. Start a savings account now. Future-you will appreciate it.
6. Upgrade for school
Is that laptop from freshman year starting to break down? Buying something to help you do better in school — like a new computer or a CPA study book — can go a long way.
7. Invest it
Feel like being one of those boring adult types? Then invest your refund in a mutual fund or stocks and let it grow.
8. Travel
Did the last seven tips give you anxiety? Taking a vacation and travelling — whether it be for a week or a semester abroad — can be a big mental relief. Take some time to get away from it all and relax for a minute.
9. Be charitable
If you are fortunate enough to not be dependent on your tax refund, consider donating it to those who aren’t as fortunate. It’s been scientifically proven that being charitable will make you happier.
10. 50/50
Life isn’t always about being safe and prepared. Consider sending half of your refund on one of the above tips and the other half on yourself. Be careful though. A $200 refund is not an excuse to buy a $600 iPad.
Jay is a 21-year-old finance senior from St. Simons Island, Georgia.