For Canadians struggling to pay bills, income tax return time can provide some relief. Whether you’re getting a big cheque or a smaller one, there are ways to use the money that can be more beneficial than others in the long run.

Here are a few tips on how to make your return work harder for you:

  1. Pay down your debts.
    The interest you pay on debt, such as credit cards and loans, can really put a dent in the money you have available for yourself and your family. Pay off your debts with the highest interest rate first to save more.
  2. Set some savings goals.
    You may have financial goals to work towards. You might be looking to buy a new home, upgrade your current one, take a vacation or pay for your children’s post-secondary education.
    To make saving easier, try the Financial Consumer Agency of Canada’s goal calculator. All you need to do is answer a few questions and the calculator will help you create a realistic savings plan.
  3. Set up an emergency fund.
    An emergency fund can help you pay for unexpected expenses, like car repairs or an urgent vet visit, without using credit. Ideally, you want to save up an emergency fund that can cover three to six months of your living expenses.
  4. Save for your retirement.
    Consider putting that money towards your retirement, especially if you don’t already have dedicated savings for it. There are many savings and investment options available to help you. Contact a financial advisor or your bank to find out what options could be a good fit for you.

Find more tips, tools and resources at canada.ca/money.