April 15th, otherwise known as "tax day", has arrived and refunds will be rolling in before you know it. While waiting for their check, consumers should take a minute to consider the benefits of making a financially smart decision on how to spend a tax refund. Here are some tips from the credit counseling professionals at ACCC to help make the best financial decision possible:

Pay Off Your Bills

High-interest credit cards, hefty student loans or any other debts take priority when deciding what to spend a tax refund on. Consumers should spend at least a portion, if not all, of their tax refund on these types of expenses. Use the tax refund to pay off debts, and get closer to saving hard earned money for what is truly desired. By lowering outstanding debt now, consumers will also save money down the road by reducing their interest payments.

Save

Those who plan to buy a home, send their kids to college, or go on a dream vacation someday will need significant funds. Starting to save for these things now is the best strategy for making those dreams a reality. Use a tax refund to start a savings account, or add the refund to an existing account and watch the investment grow into a dream.

Retirement Funds

Consumers should use at least some of their tax refund and open a new account for retirement, or add to an already existing retirement fund. In the meantime, the account can grow tax free and will later provide a solid foundation for their retirement.

Emergency Funds

Financial emergencies include: loss of a job, injury or hospitalization, death in the family, etc. Having that extra cash available in the event of an emergency is a necessity that everyone should have. But, it's not always easy to put aside funds after making regular monthly payments. So this year, when Uncle Sam gives back a few bucks, consumers should save it for a situation when they might really be strapped for cash. It will come in handy when the unexpected occurs.

Splurge

Consumers with no high-interest payments to make, who follow a regular saving plan, and already contribute to a retirement fund, can splurge their tax refund on something nice. Consider making investments in materials that will pay out dividends down the road. For instance, updating your home with new household appliances will ultimately increase its resale value.