April 8th 2019 - By Amanda Huinink
It’s that time again – tax season! Are you one of the lucky ones that will be receiving a refund this year? If yes, enjoy getting your hard-earned money back. Then start thinking, what is the best thing to do with my return?
It’s important to remember that getting a tax refund is the result of lending the government your own money for the year. Don’t think of this as new-found money. It is your money that you are getting back. Depending on your life and financial situation, there are a few common things many people use their refund for.
This is a great opportunity to pay down any high interest credit cards, put funds towards your line of credit or pay down a mortgage or car loan.
If you are one of the lucky ones with little or no debt or find your credit card payments are easy to manage then investing in your retirement is another smart option. Look into opening or making a contribution to your RRSPs. Tip: We’ve got some great rates on RRSPs!
If you don’t already have this money set aside, using your tax refund is a great way to get a kick start on an emergency fund. Look at using a Tax-Free Savings account or a High Interest Savings account. Check out the rates on our TFSA and Platinum Savings here.
If you have children, this is a great way to boost your savings and plan for their education. Save for their future by using an RESP (Registered Education Savings Plan). It’s a great tool to build your savings and who doesn’t love when the government gives free money?! Maximize on this grant and tax break by starting now. Want to learn more about RESPs? Click here.