Experts Advise Strategic Use of $3,000 Tax Refunds

With the average U.S. tax refund exceeding $3,000 this year, financial experts advise recipients to prioritize paying off high-interest debt, building emergency savings, and investing in long-term options such as certificates of deposit while rates are favorable. Experts stress that a large refund reflects over-withholding and recommend adjusting paycheck withholdings to avoid giving the IRS an interest-free loan. Setting up automatic transfers to savings or investment accounts can help prevent impulsive spending of refund money. Families are encouraged to use refunds to invest in children's futures through 529 college savings plans or CDs. The goal, according to experts, is to break even at tax time, maximizing financial control throughout the year. Strategic use of tax refunds can significantly improve long-term financial health.