Saving your tax refund

The average tax refund this year is expected to be the largest ever, a record $2,100, according to the IRS. While you may start out with good intentions for using your refund, the money can easily start to burn a hole in your pocket. Before you consider using your refund to buy a big screen TV or a new pair of shoes, consider how smart it would be to save the money instead.

Using Credit.com's free savings calculator, you can see exactly how saving your refund can pay off. Investing the $2,100 now can easily lead to having $4,661 in ten years. A little patience combined with an 8% return can double your money. Would you rather have $4,661 in ten years or $2,100 today?

Have you already received your refund for 2005? How do you compare to the $2,100 average? Share your feedback in the comments section below.