For millions of Americans, tax season means extra cash season. According to the IRS, the average refund in the 2023 tax season was $2,753, enough money to make a real change for many families — if they use it wisely. Here’s how you can make for a brighter 2024 and beyond with a few wise choices when your refund arrives.

1. Fight the Urge To Splurge
   For most of us, getting your tax refund seems like the perfect opportunity to splurge. After all, who doesn’t love spending money they didn’t have a second ago? Although it may seem like the best time to buy everything off your Amazon wishlist, your refund may be of better use as a financial seed for the future. It’s understandable to want to treat yourself – but keep it reasonable. After that, think about what’s best for your financial future.
2. Make a Plan
   When you file your returns, make a plan for your refund so you’ll be ready for your money when it arrives. Avoid sending your refund to your checking account, where your daily life expenses slowly drain your money. Separate it in a special account, preferably a Certificate or a high-yield savings account until you can figure out how much you’re going to spend, save and put aside.
3. Attack Credit Card Debt First
   If you have credit card debt, there are few better ways to spend your refund. Paying down high balances on high-interest credit cards would be a great way to get a guaranteed return on the money. Or, consider transferring your balance to a credit card with a low-fixed rate. Either way, you’ll potentially save yourself hundreds on interest payments.
4. Tackle Installment Loans Next
   If your credit cards are in good shape, the next best thing you can do is put your refund toward the principal on any installment loans. Even if you can’t pay off the whole thing, you’ll pay off your loan sooner and spend far less on interest over time. Installment loans include:
   • Personal Loans
   • Auto Loans
   • Mortgage Loans
   • Student Loans
5. Start or Build an Emergency Fund
   Emergency funds should ideally be robust enough to cover 3-6 months’ worth of living expenses. If you don’t yet have an emergency fund, or your fund isn’t large enough to cover several months without a steady income, you may want to use some of your refund to build it up so you have a cushion to fall back on.

Reference
www.gobankingrates.com/taxes/refunds/make-tax-refund-work-doing-things/.

University of Hawaii FCU Routing Number: 321379656
Account Type: Checking or Savings
Account Number(s): Please use your Checking or Savings number (which may differ from your Member number).

• Checking Account: Find your 10-digit account number on the bottom of your checks; or request via secured message in Online Banking or visit any branch.
• Savings Account: If not known, request your 3- to 5-digit account number via secured message in Online Banking or visit any branch.