Make the most of your income tax refund

(NC) Are you expecting an income tax refund this year? If so, there are strategies to use it in ways that will make your money go a long way:

1. Paying down debt
   Make a list of your debts. Include the interest rates, as well as how much each is costing you monthly, and over the long term. Paying off higher-interest and compound-interest debts, such as credit card debt, should be the priority.
2. Building an emergency fund
   It’s important to expect the unexpected, such as a surprise vet bill, car repair or loss of income. An emergency fund can be a key support for when life throws you a curveball, and a much less costly option than relying on credit.
3. Planning for retirement
   It is never too early or too late to put aside money for retirement. This is especially true if you don’t have a pension through your employer. A tax refund can be a great way to put a lump sum aside in a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP).

You can speak with a financial professional to figure out what savings tools and products suit your needs to save for your retirement.

There are resources available to help you make informed financial decisions. For example, the Financial Consumer Agency of Canada has unbiased information and tools on topics such as choosing a financial advisor, calculating credit card debt repayment options and setting financial goals. You can learn more at canada.ca/money.