Refund Checks Provide Financial Possibility

Contributing Writer

    Students here at University of Arkansas at Monticello received their refund checks this month.  It's quite exciting to think about all the possibility that piece of bank-backed paper holds.  I have some suggestions on how students can use that money.

    Spend it!
   Buying something you need or have waited to purchase until you have saved up the money to buy.  I need a new iPod.  Someone stole mine last semester, and I plan to spend part of my money on the new iPod Nano (yellow, I think).  Clothes and/or a good pair of shoes are also worthy causes.  Don't waste it and think real hard on whether or not you really need to spend the money on whatever it is you plan to buy.  If you spend it, spend smart.

   Save it!
   Refund checks in a savings account can mean more money later in life.  Save it for your future new or slightly used car or when the rain comes.  Ever since I began living on my own I've been told, "Save for at least three month's living expenses so when hard times hit you won't be on your back," or save it to later pay back those student loans.  Save the money they give you, grow it in a high yield account and give it back to pay for your loan.  Great plan!

   Live on it!
    Lots of students, including myself, use their refund check to live on during the semester.  Sometimes students need to catch-up on bill paying using refund checks.  If you have one, pay down on your credit card(s).  If the payments are easy enough to handle, at least once, pay more than the minimum payment required.  Doing so does wonders for your credit.

   Invest it!
   It’s never too early to start saving for your retirement.  Even though the economy isn't the greatest right now there are still some relatively safe ways to invest.  IRAs are still safe, unlike the popular 401(k).  Five- or Ten-year bonds provide a good way to start saving for major future purchases, like a house, yacht, whatever.  Investments are usually long-term and they cost more to start than a traditional savings account (usually at least $1000), so these are not for students who get a few hundred dollars back.

   Students if you read nothing else, read this:  Don't blow your refund check!  Think carefully about what you want to spend it on.  Divide it. Spend some, save more.  You don't get college refund checks forever, so use them wisely.  

Have a comment? Please e-mail us.

©The Voice 2008