The IRS states that the average tax refund for the 2012 filing season is $2,899. Although that amount is nearly $100 less than we received in 2011, it is still a reasonable amount. Think about all you can do with an extra $3000. Before thinking of spending it think of some wise ways you can put it to use.

1. School Loans

Put your tax refund to use for your education. You can put it into paying back your student or consumer debts. The sooner you begin to pay it off the better it is for you. Education is an investment worth chipping your money into.

2. Big-Ticket Buys

When you get back your tax refund you will be able to afford big-ticket purchases. Maybe you wanted to take that vacation trip to Cuba or Jamaica? Maybe you needed to save up towards a mortgage for a home you would want to purchase in the future. It is also a chance to buy an expensive item you need such as a new laptop, computer, or household items such as a microwave, vacuum or washer or dryer. That would be money well spent to invest in a well needed item.

3. Credit Card Debt

Credit card debt is an evil to personal financial health. You could use your extra money to knock off some debt. Maybe you will even be able to toss away your credit card. This will save you on interest and late fees. Remember having good credit is essential for future purchases such as buying a house. So put that money down towards your credit card debt and shift your spending habits to keep those credit collectors at bay!

4. Emergency Fund

It is always good to have an emergency fund in case of a rainy day. You never know what can arise in the future. You could end up in a period where you are unemployed and having difficulty looking for a job or there may be a natural disaster.

5. Necessities

It is always an advantage to use your extra cash to pay back any car payments, mortgages or taxes you may have. The extra cash could also help you pay for necessary purchases you need throughout the year.

6. Lock it into a Savings Account

Save save save! You can put the money into your savings account and let it grow or invest it. You can use it to help buy a new car, pay for transportation, down payment for a home or simply save it for a later date.