What To Do With Tax Rebate Checks

All of us are aware by now that the government is going to put some tax rebate plan in this year. We have heard the details and now are just waiting for the formal announcement to be made.

In my case the proposed tax rebate would equal $2,100. I am married ($1,200 for married couples) and have 3 children ($300 per dependant). Your tax rebate check may differ in amount based on your personal circumstance.

Checks will be received starting in May (from what I hear) and may take up to 10 weeks from when the IRS actually starts mailing the checks out. So expect May to July for delivery.

All of this assumes that the tax rebate plan goes through as expected.

Well of course the wife and I had some time to talk about what we are planning on doing with our tax rebate check. Now, you may be saying, "Deals....you have been writing about saving money, why don't you stash the cash in that E-Trade account that you set up?" The answer here is fairly simple. Our government is giving us these rebates WANTING us to spend it. That is the reason they are being sent out in the first place. Our economy is struggling and these rebates are meant to give some kind of boost in consumer spending.

Here is my problem. A good portion of what we are getting back, I have already spent. Before Thanksgiving Circuit City ran a special on HDTVs with no interest for 18 months. I sprang for a $1200 42' flat screen Vizio that I absolutely love. This was not a no interest, no payment for 18 months...just no interest, so we have been making payments on the television. By the time we get the rebate checks I foresee us owing $900-1000 on the TV still. Since I know that these rebate checks are coming...I'm not going to pay more than the minimum required at this time. So figure that we will have about $1100 remaining after we pay off the television.

This is what the wife and I plan to do.

1) $600 goes directly to the school shopping season. Clothes, shoes, supplies, sign up, registration, books, etc, ad nuseaum. Who said public school is free? Now $600 may be too much for what we need when that time comes...but at the same time, it just might not be enough but it is a very solid start.

2) We are going to split the remaining funds between us. So my wife and I will each have roughly $250 to spend. I really would like my wife to just absolutely blow this money on herself only. She is worth it. It is what the government wants her to do afterall.

3) As for me. I haven't the foggiest on what I would spend on myself. I have a very sneaking suspecision that I am going to buy a new bike for my oldest. Maybe a new chair for the desk (combining it with some gift cards that I have) and maybe a video game or something like that for me.

4) If there is anything remaining, it will go to one of the funds...the vacation fund, the emergency fund, or my brand new E-Trade savings that I opened. By the way, the money has come out of my account and I have received an email from E-Trade confirming that my account is open and ready to be looked at. I haven't had a chance to log in yet. I will give you more feedback once I do.