Some of the things I have purchased – wooden, all natural, made in USA things, have cost a good deal, but they’ve given hours of play, and we were able to pass it on in nearly perfect condition to church members – and now, THEY have been able to pass it on in perfect condition again.

I’d prefer that.
But y’know, to each their own.
Not really knowing the state of SAJ’s financial affairs – it seems a tad bit self righteous to tell her how to spend it.

Then stop.

It’s not that hard.

If you don’t need it, don’t get it.

Tax refund checks aren’t really tax refunds anyway. Instead, it’s the government paying back the no-interest loan that you made them for the previous year.

If you ARE getting a refund, it might be time to sit down and calculate your withholdings, figure out which pretax reductions you can take (flexible spending, some health MMOs and so forth take out money before taxes and can effectively lower your tax bracket), and look if you can get any tax benefits from matching your employer’s retirement plans or adding to an IRA. Then make those adjustments for next year.

Then place the “extra” money per paycheck that you will get over the next year into the bank (in effect, make that tax loan to yourself) account with a good interest rate (5+% is not unheard of) and actually earn interest on that money (instead of having the government give it back to you with no interest at the end of the year).

Then on tax day, if you have planned correctly, you will owe nothing and you will get nothing back (that’s the ideal anyway, if you owe a little, you will have squirreled it away and have at least earned interest on it).

But… and here’s the kicker!

You will actually have made MORE money than if you were waiting for a tax return.

Similarly, if you are eligible for one of the rebate checks from the government this year, I would say the same thing.

Put it in the bank (by a CD, buy bonds, etc). Or use it to make payments against the PRINCIPAL (check your loan details on how to declare this payment) so that you knock down the overall interest you will pay on the life of the loan (and effectively spend less money in interest over the long run).

Don’t spend it. It’s not free money.

As we are in a deficit, this isn’t a “rebate” of money that the government has from taxes that have been paid.

What it is, instead, is an approval from Congress (at the behest of the President) to float a loan (probably from one or both of the two major investors in the US, China or Saudi Arabia) that will then be divvied out the the American people.

Which will effectively be adding to the national debt and will have to be paid down by future taxes.

So, it’s probably best to have the money work for you (compound interest is your friend and reduced principals decrease the life and total cost of a loan), since you can’t turn it down (Congress has already approved the package).

Now I added Oompa to my list of favorite stores!

I even created a wish list!

I have things I want to get with the tax refund check… things we don’t need…

someone stop me!

If you truly cared about them, you would return the tea set and put the money into a savings account to ensure your family’s financial future.

I have also found the comments to your post disheartening. Other than Adrienne, the posters all seem to think that it is ok to spend your money so foolishly. I now understand more clearly how our country is in such financial trouble with people not planning for their futures.

For context, let me add that I am the mother of a two year old and I have never bought her any toy that cost $50. In fact, I can count on one hand the few that have cost $25. We are a financially sound family, so my purchases for my daughter are not limited by our ability to afford expensive things. But, maybe we are a financially sound family because we avoid buying her unnecessary expensive things.