02.06.2025 By Amy Miller, AFC®

3 Easy Steps to Save a Portion of Your Tax Refund

Your tax refund is one of the biggest financial opportunities of the year! Instead of spending it all at once, set yourself up for financial success by saving a portion for what matters most. Whether it’s building an emergency fund, paying down debt, or planning for a future goal, small steps can lead to BIG financial wins.

 

Follow these 3 easy steps to make the most of your tax refund this year:

Step 1: Choose Your Savings Goal

Think about what’s most important to you right now. Do you want to start an emergency fund? Pay off credit card debt? Save for a big purchase? Having a clear goal makes it easier to stay motivated and commit to saving.

Saver Tip: The America Saves 30/40/30 rule is a great way to allocate your refund:

  • 30% for past expenses (paying down debt or catching up on bills)
  • 40% for present needs (everyday expenses or an emergency fund)
  • 30% for future goals (long-term savings, retirement, or a big purchase)

Step 2: Use Direct Deposit & Split Your Refund

The easiest way to save is by automating it! When you file your taxes, choose direct deposit to get your refund faster and more securely. Use IRS Form 8888 to split your refund into multiple accounts—such as checking, savings, or even a retirement account—so you can save automatically.

Saver Tip: If you don’t have a savings account, now is a great time to open one! Look for a Bank On-certified account or an FDIC- or NCUA-insured account for security and low fees.

Step 3: Make Saving a Habit

Saving doesn’t have to stop at tax time! Keep the momentum going by setting up automatic transfers to your savings account each time you get paid. Even small amounts add up over time and help you build long-term financial security.

Saver Tip: Take the America Saves Pledge to commit to saving and receive ongoing tips and encouragement tailored to your goals!

_______________

Start Today & Make Your Refund Work for You!

Tax time is a great opportunity to take control of your financial future. By following these three simple steps, you can save automatically, reduce financial stress, and feel confident about your money decisions.

Ready to start saving? Commit to your savings goal today by taking the America Saves Pledge at AmericaSaves.org!

CHECK OUT OTHER SAVINGS JOURNEYS FROM SAVERS JUST LIKE YOU

SHARE YOUR SAVINGS TIP OR STORY WITH US

If we feature you in our newsletter, you get $50.

You May Also Be Interested In...

Take the America Saves Pledge

Make a pledge to yourself and create a simple savings plan that works.

Connect to a Campaign

Connect with a local America Saves campaign for one-on-one help and to learn more about savings initiatives and events in your area.

Sign-up for ASAW

America Save at Work is a hub of information and resources to help employers promote financial wellness for their employees.

Partner News & Updates

Join the America Saves email list to receive information about engaging content and events throughout the year.