The Check Really Is in the Mail

Government largesse rarely appears in so gracious a form as a check, so even a fairly skimpy rebate from the government is gratifying. And given that it's rare, you may be inclined to spend it on fun stuff.

But if you're feeling virtuous, financial planners have some more sobering suggestions for what you can do with your windfall.

Pay off debt. "That's a no-brainer," says William Howard, a certified financial planner in Memphis. "You're not going to get a better return on your money than paying off a 17% or 15% [interest rate on a] credit card."

Save for college. If you have children, you can deposit your check in a so-called Section 529 plan designed to save money for college. Money in these accounts accumulates tax-free. And under a new tax law, the funds can also be withdrawn without incurring any federal taxes if they are used to pay for education. Check out www.savingforcollege.com for details on individual state plans and links to their Web sites.

Build retirement funds. You can put the money toward a retirement account -- even $300 is enough to open an account at some shops. TIAA-CREF, which has a decent line-up of low-cost funds, lets you open an individual retirement account with nothing, provided you sign up for an automatic monthly investment of at least $25. Transamerica has a $250 minimum investment for IRAs. Some other companies require slightly bigger investments, but they're still relatively minimal. Third Avenue requires a minimum investment of $500 for an IRA, for example, while Oakmark has a minimum of $500 for customers who agree to make automatic monthly investments of at least $100.

Exercise your body. If you'd prefer to do something a little more indulgent and immediate than saving for retirement, you could join a health club. There's no direct dollar return here, but a new membership can help make you healthier, says Eleanor Blayney, a certified financial planner and principal at the McLean, Va.-based firm of Sullivan, Bruyette, Speros & Blayney.

Exercise your mind. The career-minded might consider signing up for evening courses to brush up on skills in areas like computers or public speaking. Neither a health club membership nor a college course carries much risk, but both offer great upside potential for relatively little money down.

In the money: When you'll get your refund check
If the last two digits of your Social Security number are:	You should receive your refund the week of:
00 - 09	July 23
10 - 19	July 30
20 - 29	August 6
30 - 39	August 13
40 - 49	August 20
50 - 59	August 27
60 - 69	September 3
70 - 79	September 10
80 - 89	September 17
90 - 99	September 24
Source: IRS.

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