What to do with your tax refund?

May 3rd, 2010 by Comment button 1 Comment »

According to the CRA, the average income tax refund cheque issued to individual tax filers is approximately $1,450.

If you are expecting a refund from CRA or have recently received it, then you may be tempted to spend your refund. Most people will spend it on such things as clothing, electronic items, or a vacation.

Here are some ideas you may not have thought of for spending your refund.

Unique spending ideas:

  • Take a self-improvement course (new language, cooking class)
  • Join a health club
  • Hire a tutor for your children to help them in school
  • Make your house more energy efficient (new furnace, new windows, etc.)
  • Service your car (preventative maintenance increases the life of a car)
  • Donate to a charity and get a tax deduction on this year’s tax return

Some financially wise uses for the funds:

  • Contribute to your RRSP
  • Contribute to your TFSA (Tax-Free Savings Account)
  • Save for a child’s education with an RESP
  • Pay down your mortgage
  • Start an emergency fund

Other non-savings related financial needs:

  • Get a Will and Power of Attorney drawn up by a lawyer
  • Add to your Life Insurance
  • Purchase Disability Insurance
  • Purchase Critical Illness Insurance

Article submitted by Natalie Jamison of RBC Dominion Securities in Oakville, Ontario. Visit her web site at www.jamison.ca

Women & Wealth ™ – specializing in wealth management for women and families.

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About the author: womenandwealth

Natalie Jamison is the founder of Women & Wealth ™ - a unique approach to providing professional wealth management for women of all ages.

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