Ways to Invest Your Tax Refund

Are you expecting a tax refund? Over 80% of Americans receive an average of $3,090 in refunds at the end of the tax year. A tax refund is often received in a positive light, since it means extra spending money; however, receiving a large refund may actually be an indication of poor financial planning. This is because receiving a refund means you’ve lowered your take-home pay in the prior tax year and that you’ve made an interest-free loan to the government for the entire year. The money that comes to you in the form of a refund is money that you could’ve invested or used to pay bills. Read this Northrop Grumman Federal Credit Union article to learn how to effectively invest your tax refund.

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