Money Matters: Six Smart Ways to Use Your Tax Refund

Six Smart Ways to Use Your Tax Refund

Your money has just been returned to you from Uncle Sam; Now what?

According to Citizens Bank, last year, 86 million people received a refund from the IRS. The total amount was approximately $245 billion, with an average individual refund of $2800. If you received a tax refund this season, congratulations!

There are several different ways to utilize that money, but do you have a plan for using it effectively?

This is an excellent opportunity to boost your financial health. Instead of letting that money slip away, here are a few innovative, intentional options to make your refund count, especially if you're using a bank or credit union to manage your money.

1. Save It for a Rainy Day

The easiest—and most powerful—thing you can do? Save it. Whether you deposit it into your credit union savings account or high-yield savings at your bank, having emergency funds gives you peace of mind. Financial expert Dave Ramsey recommends starting with at least $1,000 in emergency savings. Have you already used your rainy-day fund? Now’s a great time to refill it.

Pro Tip: Set up automatic transfers so you’re consistently saving a little every month, too.

2. Tackle Your Student Loans

Still carrying student loan debt? Your tax refund could help chip away at it. Making extra payments—even just once a year—can shorten your loan term and save you thousands in interest over time.

Discipline and extra shifts now = freedom and options later.

3. Pay Off Credit Card Debt

Do you have lingering credit card balances? Paying them off is one of the best uses of your refund. Credit cards often carry high interest rates that eat into your financial progress.

Bonus challenge: Use this moment to start fresh and switch to using a debit card (tied to your checking account) instead of relying on credit.

4. Invest in Your Future

If your debts are under control and you’ve got savings, consider investing your refund.

• Open a Roth IRA and let your money grow tax-free

• Start investing in low-cost index funds or individual stocks

• Or create an investment club with fellow nurses and learn together!

Even a small start can lead to significant growth over time.

5. Plan a Budget-Friendly Vacation

You’ve worked hard all year, so if you’re financially stable, treat yourself! Use a portion of your refund to plan a relaxing getaway that fits your budget. Taking time to rest and reset is an essential part of self-care, and nurses need it.

Tip: Travel during off-peak times or pair it with a professional conference for a double win!

6. Keep Learning and Growing

Learning doesn’t stop when school ends. Use your refund to:

• Attend a nursing conference in your specialty

• Take an online course you’ve been eyeing

• Earn a new certification to boost your career

Bonus: Many conferences are in great destinations—stay an extra day, split hotel costs with a friend, and turn it into a mini vacation!

Final Thoughts to Use Your Tax Refund:

Your tax refund is more than just extra cash—it's an opportunity. Whether you save it, pay off debt, invest, or grow professionally, your financial decisions today can set you up for a stronger, more secure tomorrow.

Remember: Choosing the right financial institution—like a bank or credit union that aligns with your goals—can help make the most of every dollar.