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Thats a big leap from the 2024 average of $1,395, but its normal.
So, whats the best way to put those refunds to good use?
Should they bank the cash in a savings account or use it to pay down debt?
Answer the following three questions tofind the solution that best suits your finances.
Do You Have an Emergency Fund?
If you carry debt, particularly high-interest debt, you might be eager to pay it down.
Thats a smart move but only if you have at least some emergency savings.
Personal finance celebrityDave Ramsey recommendedbuilding a starter emergency fund of $1,000 before addressing your debt.
Whats Your Interest Rate?
If your debt is manageable, its still a great time to amass cash reserves.
