Tax season is wrapping up and if you’re one of the millions of Americans getting money back, you might be feeling pretty stoked right now. The IRS has processed over 87 million returns so far and handed out nearly 63 million refunds. The average refund? About $3,521, which is $351 more than last year. That’s real money, and it deserves a real strategy.

Before you start planning that shopping spree or vacation, financial experts want you to think strategically about what you do with this cash. According to Kelli Smith, executive director of financial planning at Edelman Financial Engines, the first thing to ask yourself is whether you’re behind on essential bills like rent, your car payment, or childcare. If you’re at risk of foreclosure or repossession, getting current on those payments should be your move.

If you’re not falling behind on essentials but you’re carrying credit card debt, that’s where your attention needs to go. High-interest credit card debt is basically a financial emergency waiting to happen. Say you’ve got a $5,000 balance on a card charging 23% interest and you’re only making minimum payments. You could end up paying over $8,000 in interest alone. But if you throw that $3,500 refund at it? You’d save over $6,400 in interest. That’s not chump change.

Here’s the next level move: take any remaining balance and transfer it to a zero-interest card that gives you 18 to 21 months interest-free, or consolidate your debt into a personal loan with a lower rate. You’re basically paying yourself by not hemorrhaging money to credit card companies.

If your debt situation is under control but you don’t have an emergency fund, that’s your next priority. Financial experts recommend having three to six months of living expenses saved up. Parking that refund in a high-yield savings account keeps your money accessible while actually beating inflation. Trust us, having an emergency fund is way cheaper than putting unexpected expenses on a credit card.

If your finances are actually in good shape, you could earmark your refund for bigger goals coming up in the next couple years, like a car down payment, home down payment, or college tuition. Less borrowing means less interest paid overall.

Here’s the thing though: if everything’s genuinely fine, you can absolutely set some of that money aside for something fun. Whether it’s a trip or a home renovation, you deserve to enjoy some of your refund. Even if you’re tackling debt or building an emergency fund, consider setting aside a couple hundred bucks for a staycation or something that brings you joy.

One final reality check: getting a refund technically means you gave the government an interest-free loan all year. If you want to keep more money in every paycheck, you might want to adjust your tax withholding through the IRS.