SIFE Financial Corner

U-News Staff

Each week, the Students in the Free Enterprise (SIFE) Team from the Henry W. Bloch School of Management, with assistance from a group of respected business people, will answer your financial questions.

What are some smart ways to use your tax refund?

Invest the money you receive into some type of Individual Retirement Account (IRA).

Whether you receive a small or large amount on your tax refund you can make a great investment by starting a retirement fund. Any money you can contribute to this account will earn interest over time, therefore making this a wise financial decision.

Use this extra money to pay off some debt.

By making a payment on debt you have, you will not only reduce the principle that you owe, but you will also lower the amount of interest that is being accrued. Again, this is a smart financial decision that will save you money over the long run.

Do something that will give you self-satisfaction.

You could hire a trainer at your local gym, make a donation to a local charity, or invest in learning a new skill. All of these options are not only good financial choices, but they will also give you an intrinsic satisfaction.

Lastly, you could always use this extra money as an opportunity to splurge.

While this is definitely not the most responsible financial decision, sometimes we all need to spend some money on ourselves. This option could result in a shopping spree or a weekend getaway, but I would suggest that you not spend all of your money on this option. That is because the three options mentioned above are obviously more of a priority.

E-mail your questions to the Student in Free Enterprise Team at [email protected]