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  • Apr 28, 2008 3:11 pm US/Pacific
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Tax Rebate Check: Save Or Spend?

 QUESTION:  Should I save my tax rebate check or spend it as the government recommends?

ANSWER:  The answer to this question should be based on your own personal financial situation.  If you have very little in savings, I would save the rebate.  If you have high interest debt, I would pay down the debt.  If you do not have either of the above issues, and you have an additional "need" I would not have a problem spending it.  However, if you have little in the way of investments, I would invest the money before spending it.  I put need in quotations, as I truly mean need and not "wants".  In the long run, if we want our economy to continue to be at the forefront of the world, and continue to grow,we need our population to have a more balanced approach to spending and saving/investing.  An economy can not simply spend its way to prosperity.  At some point we as a population will have to pay for that spending with slower growth, as we pay down the debts that will accumulate from over spending.
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Money Matters is provided by:

David Schauer, CFA, MSFA, CFP®
Financial Planner
Hanson McClain
E-mail questions to moneymatters@kovr.com

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