The 2016 income tax filing season is well under way once more. I propose to examine some wise ways to apply your tax refund.

There are no shortages of sound possibilities for the personal finances. For example, you can spend, save and invest the princely sum.

First off, park the tax refund into a saving account to resist impulse, say for 30 to 60 days. It provides you sufficient time to reflect and evaluate your needs and options that apply.

Try your utmost to arrange lasting usefulness from this source of cash. Many of the allocations you can make are typically not reversible.

Everyone can reap value from these best practices. Here are some sensible ideas dealing with tax refunds:

• Repaying credit card balances is the perennial top notch, risk-free allocation.
• Trimming a line of credit, mortgage or student loan is desirable.
• Contributing to an RRSP boosts the retirement nest egg.
• Topping up the TFSA generates additional tax-free investment income.
• Donating to a charity of your choice is a noble cause.
• Helping out someone less fortunate than you is generous.
• Making an RESP deposit helps pay for the rising costs of education.
• Examining an RDSP for a special needs family member is unselfish.
• Leaving it permanently in your saving account is a choice.
• Paying an outstanding bill is an anxiety off your mind.
• Rebuilding the emergency account is beneficial.
• Expanding your small business capital is worthwhile.
• Lending it at the prescribed rate to the low tax bracket spouse improves income splitting.
• Assisting an adult child in purchasing an automobile or residence.
• Adding to your investment plan is rewarding.
• Spending on your family travel or leisure is also fitting.
• Allocating to property renovations such as your home.
• Investing in improving your career or education.
• Directing funds towards the next income tax instalment.
• Starting the accumulation for the Christmas gift fund.

Now you’re ready to sprinkle the cherished tax refund wisely. Allocate it according to priorities best suited to your family needs.

Most families pick one to three different allocations. Just make yours count.