Smart Tips for Spending Your Tax Refund

Experts advise using your refund to pay down debt and invest in education

Apr. 10, 2026 at 3:08pm

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An extreme close-up of various financial tools and machinery, including a calculator, gears, and other industrial components, conveying the complex mechanics of personal finance and tax planning.A detailed look at the inner workings of personal finance reveals the importance of strategic tax planning and debt management.Norfolk Today

With the average tax refund this year at $3,500, experts suggest using the money wisely by prioritizing high-interest debt, investing in a 529 education savings plan, or taking advantage of upcoming seasonal sales to make purchases for the home.

Why it matters

Tax refunds provide a valuable opportunity for many Americans to get a financial boost and make progress on their financial goals. How people choose to spend this money can have a significant impact on their long-term financial health.

The details

Financial experts recommend using tax refunds to pay down high-interest debt like credit cards or student loans, as this can save money on interest charges over time. Another smart option is to invest in a 529 college savings plan for children, which allows the money to grow tax-deferred. For those looking to make purchases, the experts suggest waiting for upcoming seasonal sales at home improvement stores and for big-ticket items like mattresses.

  • Tax Day is April 15, 2026.
  • Home Depot and Lowe's are having spring 2026 sales.
  • Big Memorial Day sales are approaching in late May 2026.

The players

Trae Bodge

A smart shopping expert who provided advice on maximizing tax refunds.

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What they’re saying

“When you're looking at this huge pile of debt, it is really hard to think like, 'how am I going to get chip away at this?'”

— Trae Bodge, Smart Shopping Expert

“One of my favorite tactics actually, which I've used for my mortgages for many years, is to pay twice a month. You could split your regular monthly payment into two, so it's not even paying extra and what that does is it gives you a 15-day jump on that interest that you're accruing. On a bigger debt like a mortgage, that can be significant over the months and years.”

— Trae Bodge, Smart Shopping Expert

“This is a good time to think about investing in your kids, in yourself, in education in general. If you have a 529 account for your kids, it's a great opportunity to put a little bit more in there. If you don't have a 529, this is your time. Set up that 529 because the more years you spend saving for your kids' education, the much better off you're going to be when they're starting to look at colleges and look at those huge tuitions. Some of these schools are $850,000 to $90,000 per year per kid. It is big and so the longer you save for that 529 the better off you're going to be.”

— Trae Bodge, Smart Shopping Expert

What’s next

Taxpayers have until April 15, 2026 to file their taxes or request an extension.

The takeaway

Tax refunds provide a valuable opportunity to improve one's financial health, whether by paying down high-interest debt, investing in education, or taking advantage of upcoming seasonal sales. By being strategic with this extra money, taxpayers can set themselves up for greater long-term financial stability.