By Luis Salinas/reporter
With tax season and its stresses over, refunds are not that far away. Some students are ready to spend it on desired goods, but experts may not agree that’s the best option.
Jose Alfaro, 22, of South Campus plans on receiving a whopping $5,000 return. He said he will use this money to go to New York for two weeks and to fix and tune up his 2009 navy blue Honda Civic Si.
“I like going places and having lots of fun, especially going fast in my car,” he said.
According to Teresa Mears, a writer for the website thedailyfinance.com, “If you have any consumer debt — student loans, credit card balances or installment loans — pay those off before using your refund for any other purpose.”
Other advice would be to add to the savings account for emergencies or just to finance a bigger investment. Such strategies might sound a bit boring to students, but not all money has to go to savings.
Byron Hurt, 25, another South student, expects to get a $1,000 return. He plans to use his money to buy a PS4, Samsung Smart TV and an Xbox 1.
“I like staying home and relaxing while playing all sorts of video games and hanging out with friends,” Hurt said.
Whether wasting or saving money, students use the money for whatever they want, but experts suggest saving.
Mears said people can invest in themselves by doing something that has intrinsic meaning and adds value to their lives.
“Consider putting your refund to good use by adding insulation, replacing old windows and doors or other improvements that would save energy and, therefore, money,” she said.
Another strategy would be applying this year’s tax refund to the next year’s return, which in turn would free up extra cash if the student isn’t in debt, Mears pointed out.
All in all, it will all come down to watching the way money is used in daily lives and determining if something is worthwhile. A trip can be a life-changing event in one’s life and a way of experiencing the world and what it has to offer.
Mears suggests setting a goal for something desired can help with deciding how to save or spend money.
South student Katie Hanes, 24, plans to use her $300 refund to get her wisdom teeth taken out and use the leftover cash for clothes.
“I would have wanted to waste all the money on clothes, but these teeth have just got to go,” she said.
