Library of Congress Federal Credit Union

Tax season can be stressful … but that refund? A breath of fresh air. Whether it’s a little
or a lot, your tax refund is a great opportunity to make a smart financial move. Here are
a few practical, feel-good ways to put that money to work:

1. Build (or Boost) Your Emergency Fund
   Life happens, flat tires, surprise vet visits, or even a leaky roof. Having a financial
   cushion can make those moments feel a lot less overwhelming. If you don’t already
   have three to six months of expenses saved, this is a great place to start.
2. Tackle High-Interest Debt
   Got credit card debt? Paying it down with your refund can save you big in the long run.
   Focus on the highest interest rates first, it’s a smart way to lighten the load.
3. Give Your Retirement a Boost
   Even a small deposit into a Traditional or Roth IRA now can make a big impact down
   the road thanks to compound interest. Your future self will thank you.
4. Make Meaningful Home Improvements
   A little home upgrade goes a long way, whether it’s fixing that leaky faucet or finally
   painting the guest room. You’ll increase your home’s value and enjoy the space more.
5. Invest in Yourself
   Thinking about taking a course or earning a certification? Your refund could cover the
   cost and open the door to new skills, or even a new job opportunity.
6. Save for Something Big
   Whether it’s a family vacation, a new car, or a down payment on a home, putting your
   refund toward a larger goal now can keep you from relying on credit later.
7. Start (or Grow) a College Fund
   If you have kids, consider contributing to a 529 college savings plan. It’s a great way to
   plan ahead—and the money grows tax-free when used for qualified education
   expenses.
8. Support a Cause You Care About
   If you’re in a good place financially, donating part of your refund can be a meaningful
   way to give back—and might even be tax-deductible next year.

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The Stories from the Stacks blog is for everyone. From those facing financial challenges to those who simply want tips or a better understanding of their relationship with money, this is designed for anyone interested in advancing their financial life story. Let us know what topics you’d like us to explore next!