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
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