Seven Ways to Spend Your Tax Refund

You may want to splurge, but using your tax refund to save for the future or pay down debt is a much better idea — even if not as fun.

drawing of a hand holding a tax refund check coming out of a mailbox
(Image credit: Getty Images)

You may have already received your tax refund — or you will soon. In 2024, the IRS expects the average tax refund to be about $3,100. That’s a pretty good chunk of change, and it makes smart financial sense to make the most of it. 

When the check arrives or is automatically deposited in your bank account, it can be tempting to indulge in dinners out, add an extra streaming service, or buy presents for everyone in the family (and all of your friends, too). Before you think up a million more ways to spend your refund, consider these seven ways to invest in yourself— and your future — instead. You’ll be happy you did.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Kathryn Pomroy

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.