Got a tax refund? Here’s how you could put it to good use, according to experts

If you've got a few hundred dollars back from your taxes this year, here's what experts say are the best ways to spend or save it amid fears of a recession.

It’s a joy many Canadians get to experience during tax season: after painstakingly plugging in every expense and income statement from last year, it turns out you overpaid the Canada Revenue Agency, and you get a tax refund!

If you’re lucky enough to avoid owing the CRA money this time of year, your mind might start to race about what you could do with the extra dollars.

But with storm clouds looming in the economy and higher interest rates taking bigger chunks out of Canadians’ budgets, is now the time to treat yourself or to put more money away for a rainy day?

Here are a few things personal finance experts say you might want to consider when deciding how to spend a tax return.

(Oh, and if you haven’t filled those taxes yet, a quick reminder that the deadline for individuals to take care of that is Monday, May 1.)

When tax returns start hitting your account, it’s a good time to look back at some of the goals you set for yourself at the start of the year, says Sandy Yong, Toronto-based author of The Money Master.

While many Canadians are encouraged to get their finances in order in January, some of that momentum might have frayed a few months on, she says.

A sudden influx of cash could be just what’s needed to get your priorities back on track, Yong argues.