If you’re owed a tax refund and it hasn’t already arrived, it’s bound to hit your bank account (or mailbox) sometime soon. As of mid-March, the average refund amount that taxpayers are receiving this tax season is $3,109, said The Wall Street Journal.
Given this is far from an insignificant chunk of change, it’s helpful to have a plan in place for how to use it. While treating yourself to a vacation or retail purchase is an option — in fact, said CNBC Make It, “about 20% of taxpayers plan to use the cash for fun expenses” — it’s not necessarily the choice that’s going to offer the best bang for your buck.
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