If you are getting a tax refund, please think carefully about what to do with the money. I would be tempted to take a vacation or buy one of the newest, fanciest TVs but I would be much better served to reduce high cost debt (hello credit card account) or save the money. If you have an ongoing balance on your credit card (or cards) a tax refund can play a useful role in reducing or eliminating that debt. Since most credit cards carry high rates of interest using the refund to reduce those balances will greatly improve your financial picture. If you don’t have credit card balances, saving the money for the proverbial rainy day is a good idea. According to the experts, a household should have 3 months of income in reserve for unexpected expenses (like a new furnace or car repairs). If you don’t have reserves at that level, here is a chance to add to (or start) a savings account.