Money Management

Getting a refund? Read on to see if the best place for it is none other than the bank. 

Just because you’re filing a tax return doesn’t mean you’re guaranteed to get a refund. And this year, tax refunds are likely to be lower across the board since the pandemic-era benefits that were in place for the 2021 tax year did not get extended to 2022.

But if you recently completed your tax return and are anticipating a refund, you might already be making plans for that money. And those plans could include a vacation, some upgraded electronics, or even a series of fun nights out.

It’s easy to see why you might be tempted to spend your tax refund on something enjoyable. But you may want to consider putting your refund into a savings account instead.

Use your refund to better your financial situation

A recent survey by Empower Annuity Insurance Company of America found that 36% of people who are getting a refund plan to save that money. And if you don’t have a complete emergency fund, then it pays to stick your cash in the bank, too.

Of course, this assumes you don’t have overdue bills you’ve been counting on your refund to pay. If that’s the case, you might need to use your tax refund to get current on your utility bills, or to catch up on a missed car payment. But if you’re up to date on your bills and that money really is extra, then it pays to assess your emergency fund and see if it needs work.

Your emergency fund should have enough money to cover a minimum of three months of essential bills. The logic there is that if you were to lose your job, you might need that cash to cover your expenses while you look for work. So if you currently spend $2,500 a month on essential expenses and you only have $4,000 in savings, you may want to use your tax refund to boost your emergency cash reserves.

Other good uses for your tax refund

Maybe you already have a fully loaded emergency fund, you’re debt-free, and you’re current on bills. In that case, is your tax refund yours to spend freely?

Not necessarily. There may be other ways your tax refund can help address a financial need.

Imagine there’s a home repair you’ve been putting off for months due to not wanting to dip into your savings. You might be able to use your tax refund to address that issue so it doesn’t get worse.

Also, while you might have plenty of money in the bank for emergencies, if you’ve yet to start building retirement savings, your tax refund could serve as seed money for your IRA account. Or, you might be able to use that money to start saving for your kids’ higher education.

If you’re really meeting all of your financial goals, then sure, go ahead and spend your tax refund, whether it’s for a weekend getaway with your partner or a new TV. But before you spend your refund, think about the different ways it might help your financial picture improve on a whole.

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Costco offers one of the most liberal return policies in the retail industry. Read on to find out five items it’s not going to give a refund on, though. 

Have you ever returned home from a Costco run and wondered what in the world you were thinking? As you stand there looking at a giant stuffed kangaroo and a pile of new workout clothes you know you’ll never wear, you wonder if there’s something strange in the Costco air that pushes you to make ridiculous purchases.

Fortunately, Costco is known for its generous refund policy so you can return that silly kangaroo and put the money back in your bank account. However, even your friendly neighborhood Costco store has its limits. Here is the shockingly short list of purchases Costco will not refund.

1. Alcoholic beverages

It doesn’t matter if you bought too much tequila for a bachelorette party or decided halfway through a bottle of chianti that it just wasn’t doing it for you. Unless your state allows retailers to make refunds on alcohol, Costco won’t be able to help. So, if you plan on returning that six-pack of wine coolers you’re too embarrassed to drink in public, you should probably call your local store to learn whether a return is permissible.

2. Cigarettes

Ditto on cigarettes. If you’ve decided to break the habit, congratulations! However, Costco can only accept the return if your state allows for refunds on tobacco products.

3. Tires

Limited lifetime products like tires are sold with a specific limited warranty. If you hope to return a set of tires after taking a Thelma-and-Louise-type road trip (minus the whole cliff thing), it will only work if the warranty hasn’t expired. Otherwise, you’ll need to pull out your debit or Visa card and buy a whole new set of tires.

4. Batteries

Car batteries are the rascal of auto parts. After all, they know precisely when to die (or play dead). Have you ever noticed how it’s always at the most inconvenient time? Batteries don’t typically die in the middle of the day, a block from home. Nope. It’s late at night when you’re driving in a part of town you don’t know or trying to leave a crowded ball stadium. But like tires — their partners in crime — a dead battery won’t score you a refund at Costco unless it’s still under warranty.

5. Special order kiosk items

Remember that time you purchased a granite countertop from Costco, only to decide weeks later that what you really wanted was quartz? No? Whew! That’s good, because those customized orders aren’t refundable. If you’re buying custom flooring, garage doors, solar panels, gutters, a water treatment system, or any other customized home improvement, make sure it’s what you want before making the purchase.

You’ll have 90 days to return these Costco items

If you’ve ever taken part in the great Costco vs. Sam’s Club debate, here’s a point Costco will win every time: Overall, Costco gives you more time to return big-ticket items for a refund. Here are some of the Costco purchases you have 90 days to return:

Televisions. You have 90 days to return a television that’s not right for you. If your TV is having issues but you miss the cutoff, Costco has a tech support team to help you troubleshoot the problem.Projectors. If you’re putting a cozy theater room together in your home, you need a projector that provides just the right picture. If the model you buy falls short, Costco allows you to return it within 90 days of your purchase.Household appliances. Whether it’s a stove, washer and dryer, dishwasher, microwave, or refrigerator that’s not working out, you have 90 days to make the return.Computers. Let’s say you work from home and need a computer you can count on. After a month of trying to adjust, you finally admit that your new computer is not a good fit. Because Costco gives you 90 days to make that decision, you’re not stuck with a work tool that doesn’t work for you.Cellphones. Whether you can’t imagine life without a cellphone or wish they’d never been invented, you want a model that does everything you need it to do. If Costco is your first stop when it’s time to buy a new iPhone or Android, you know you can return it within 90 days if it’s a bit of a dud.Touchscreen tablets. If your tablet goes everywhere with you, you want it to perfectly meet your needs — whether it’s surfing the web or watching a movie on a long flight. If it fails to make the grade, you have 90 days to return it for a refund.Smartwatches. Some people can’t imagine going anywhere without counting their steps, checking their heart rate, or receiving notifications. And that’s where wearable devices come in. However, should you purchase a smartwatch and it disappoints in some way, you can return it to your nearest Costco store.

Jewelry

According to Costco, there’s no limit on the time you have to return jewelry purchased in one of its warehouse stores. They call it their “Risk-Free 100% Satisfaction Guarantee.” Whether you’re returning earrings or a bracelet, you can request a full refund or exchange it for something else.

There is one interesting exception, though.

Imagine you purchase an engagement ring, pop the question, and your intended says, “Well, I would, but I don’t want to.” That’s the bad news. The good news is that you can return the ring for a refund.

However, if you bought a diamond ring that’s 1.0 carat or larger, you’ll need to bring all the original paperwork with you, including the receipt and IGI or GIA certificates. A Costco gemologist will inspect the diamond for authenticity, and if everything looks good, you’ll be issued a refund.

All in all, Costco makes it as easy as possible to receive a refund whenever possible. Given the retailer’s sheer volume of sales, it’s impressive that only five products do not make the cut.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Visa. The Motley Fool has a disclosure policy.

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Bitcoin’s price has increased by over 80% since the start of the year amidst a wider crypto rally. Find out why it’s too soon to hope that the crypto winter might be over. 

Bitcoin (BTC) has pushed above $30,000 for the first time since June last year, peaking at almost $31,400 this morning. Bitcoin’s price is up over 80% since the start of this year, according to CoinMarketCap data. That’s impressive, but it’s still got a long way to go before it regains its 2021 high of almost $69,000. Find out what’s behind its recent price action and what it means for investors.

What’s behind Bitcoin’s rally?

There are several drivers behind Bitcoin’s recent rally. Chief among them is speculation that the Federal Reserve may stop increasing interest rates. The Fed has been aggressively pushing interest rates upward in an attempt to get inflation under control. This had a big impact on crypto prices, as it meant people pulled out of riskier assets like Bitcoin. The thinking is that the investors might swing back toward crypto if the Fed eases its tightening measures.

Some insiders think fears around traditional banking are also fuelling price rises. For example, Bradley Duke, co-chief executive officer of ETC Group, told Bloomberg that people are also being drawn to crypto because it’s “an asset outside of traditional banking and finance.”

Sentiment also plays a huge part in Bitcoin’s price. This is a market with a lot of speculative price action, and investors often buy when things seem to be going well — partly out of a fear of missing out — which pushes prices up further. It’s not so surprising, then, that the Crypto Fear and Greed Index is into serious greed territory. The index, which uses a couple of factors including momentum, volatility, and social media analysis, hasn’t logged such high greed figures since November 2021.

Can it continue to rise?

Many crypto investors want to know whether this might finally mark the end of the crypto winter. It’s an understandable question, particularly as many people’s portfolios have taken significant hits. But unfortunately, nobody has a crystal ball and it is hard to know whether — and for how long — the current rally will continue.

What we do know is that Bitcoin and cryptocurrency have some serious hurdles to jump in both the near and long term. Regulators have been cracking down on the whole industry. The SEC says many cryptocurrencies are unregistered securities and argues they should come under its remit. If it can push this case successfully, it will have a significant impact on the way we buy and sell crypto.

There are also growing fears that we’re about to enter a recession. This could be another drag on Bitcoin’s price as recessions tend to make people more risk averse. More widely, crypto faces a trust issue: the collapse of several crypto platforms has dented people’s confidence in the whole industry. This is particularly true as we learn more about what went on behind the scenes at FTX and the degree to which the company mishandled customers’ money.

Should you buy?

If you’re considering buying Bitcoin, know that it remains an extremely volatile asset. Think about how it might perform in the long term and make sure you understand the risks involved. We are no longer in the stimulus-laiden climate that fueled the crypto frenzy of 2020 and 2021, and there are no guarantees that prices will ever recover those highs.

It’s also important to be comfortable with the consequences of the relative lack of regulation in the industry. First, there is not a lot in the way of investor protection if your crypto platform fails. Second, if and when authorities introduce more rules, prices will likely fall in the short term. For example, it’s only through increased transparency that we’ll find out what reserves other crypto players have. Stricter regulation may also uncover the truth of accusations of fraudulent practices, such as wash trading.

All the same, Bitcoin evangelists argue that the leading crypto could transform the way we use money and it may be the digital currency of the future. If you think their logic holds water and want to own crypto, it’s important to manage the level of risk you’re taking on and make sure it only represents a small portion of your overall portfolio. Follow the golden rules of crypto investing: Only invest money you can afford to lose and use a crypto exchange that you trust.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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