• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Contact Us
  • Locate Us
  • Apply For A Loan
  • Events

SafeAmerica Credit Union

  • Checking
  • Savings
  • Loans
  • Services
  • Autos
  • Payments
  • Join
  • Log In
Tax Refund - Vacation

May 12, 2023 • By Kevin Alvarez

Thinking About Splurging On A Vacation Using Your Tax Refund?

It’s that time of year: Many who are receiving a tax refund are weighing what to do with it. Will you use your tax refund to plan for a summer getaway? Put it away for the holidays? Splurge? Spend? Save? GreenPath counselor Kathryn Bossler discusses the pros and cons of using your refund for a spring or summer getaway:

Is it okay to use your tax refund to pay for a vacation?  There is nothing necessarily wrong with using your tax refund to take a vacation but first ask yourself if the vacation is the best way to use your refund?  Many times, a vacation falls under the “wants” category of expenses, not the “needs”.

So, I would suggest taking time to review your entire financial situation before putting your refund towards a vacation.

What’s a better approach?  Ask yourself a few more questions:

  1. Do I have any high interest debt (credit cards, loans, etc.) that I need to pay off? 
  2. How much do I have in emergency savings? 
  3. What other major expenses are coming up and how will I pay for them? 
  4. Do I have money saved in case of a home repair, car repair, medical emergency? 
  5. Were there expenses last year that came up that I struggled to pay for or that I regretted not setting some of my refund dollars aside for?

If you decide that the refund is really better spent on paying down debt and saving for emergencies, consider reviewing your budget and work towards saving for that vacation out of your paycheck.

For example, if you want to take a vacation in August that will cost $2000, consider that $2000 by the number of paychecks that you will have until August and work to save that.

Even consider having funds go directly into a savings account specifically for a vacation.

How much of a tax refund should go towards debt and how much towards vacation ideally and how much towards savings?  This is really hard to answer.  The key here is that there needs to be a plan.  For example, if you do have debt, is there a clear plan to pay that debt off?  Do you have a system in place for building savings and are you sticking to it?  The vacation is something that needs to be considered, in relation to these other issues.

What’s the danger of splurging on a vacation with your tax refund?  The danger is that it could be a blown opportunity.  A tax refund can be used to really make a significant difference in someone’s entire financial situation.  It could be a way to make a major dent in credit card debt, or a way to be able to build some emergency savings that many struggle to build throughout the year with a paycheck.

So, take some time, weigh the pros and cons and see how you can put together a vacation plan wisely.

This information is brought to you by our partner, GreenPath Financial Wellness

GreenPath FInancial Wellness
Previous Post: « The Importance Of Keeping Your Apps Updated

Primary Sidebar

Recent Posts

  • Thinking About Splurging On A Vacation Using Your Tax Refund?
  • The Importance Of Keeping Your Apps Updated
  • Steps To Take To Figure Out Your Finances
  • Financial Well-Being For Our Youth – National Credit Union Youth Month
  • Message From Your Interim CEO: Your Accounts Are Safe With Us

Keep In Touch

Facebook Twitter LinkedIn Instagram

Footer

Home

Home

  • Contact Us
  • Find A Branch
  • About SafeAmerica
  • SafeAmerica Leadership
  • Careers
  • COVID-19 Updates

Services

Services

  • Online Banking & Bill Pay
  • Mobile Banking & Mobile Deposit
  • Direct Deposit
  • Mobile Wallets
  • VISA® Debit Card
  • STARS Telephone Banking
  • eStatements
  • Investment Management
  • View Your LPL Account
  • Enterprise Car Sales
  • Order Checks

Banking

Banking

  • Checking
  • MoveUP Rewards Program
  • Savings
  • Money Market
  • Certificates
  • IRAs
  • Account Insurance
  • Youth Program

Community

Community

  • College Scholarship Program
  • Events
  • CU@Work Program

Resources

Resources

  • Rates & Fee Schedule
  • Calculators
  • Educational Videos
  • Financial Education
  • Discount Programs
  • Newsletter
  • Switch Kit
  • Travel Notification Form
  • Blog
  • Forms & Applications
  • Secure Document Upload
  • Financial Hardship
  • Foreclosure Prevention Strategies
  • Privacy
  • Disclosures
  • Report Website Errors

Loans

Loans

  • Auto Loans
  • Home Loans
  • VISA® Credit Card
  • Personal Loans & Lines of Credit
  • Student Loans
  • Refinance Your Existing Loan
  • VISA® Balance Transfer
  • Vehicle Release Information
  • Skip-A-Pay Program
  • Make A Payment

Protection & Insurance

Protection & Insurance

  • Auto, Home & Life Insurance
  • Accidental Death Insurance
  • Long-Term Care Insurance
  • Debt Cancellation
  • Vehicle Protection
  • Verify Insurance

Buttons

Follow Us

Follow Us

Facebook Twitter LinkedIn Instagram

Phone

(800) 972-0999

  • No. California: (925) 734-4111
  • Lost or Stolen Card 
  • Debit and Credit: (833) 933-1681

Routing Number: 321171757

NMLS#: 746366

Log In »

Logos

SafeAmerica is an Equal Housing Lender American Share Insurance Logo

Your savings insured to $500,000 per account. By members’ choice, this institution is not federally insured, or insured by any state government.

© 2023 SafeAmerica Credit Union. All rights reserved.

We use cookies to give you a more relevant browsing experience and improve our website. Using this site means that you agree with our Use of Cookies Policy. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT