How to Spend Your Tax Rebate Check

The Bush administration recently announced a plan to send most Americans a rebate check to stimulate the economy. Americans could get a $600 rebate($1200 per married couple), and those with children may get an additional $300 for each child. You're probably already wondering how to spend this "found" money.

Difficulty: Easy

Instructions

1. Pay bills. Financial guru Suze Orman advises people to address their credit card debts first. There is no “found” money if you already “owe” money elsewhere. Put your tax rebate towards any high interest credit card debt.

2. Invest. Consider investing in a mutual fund, stocks or bonds. Make a lump sum contribution into your 401-K plan, if your company allows it (some companies only accept payroll deductions for 401-K).

3. Use it towards vacation. If you’ve been putting off that long weekend, why not use the extra cash to go away for a few days? $1200 (if both you and your partner receive the rebate) can buy you a few days away from it all.

4. Sock it away for Christmas spending. If you get yourself into debt every Christmas, put your tax rebate aside for holiday spending. Open a Christmas club savings account at your bank and don’t touch the money until next December.

5. Splurge on a big purchase. If your other finances are in order, use the rebate money to treat yourself to something nice. If you’ve been eyeing that plasma TV or those pricey Christian Louboutin shoes, go ahead and buy. You’ll be doing something nice for yourself and you’ll help to boost the economy.

Tips & Warnings

• Don't spend your rebate money until you get the check in the mail. The idea isn't to get into further debt.