According to IRS filing data, the average tax refund is about $350 higher this season compared to last year. But no matter the size of your refund, what you do with it could have a lasting impact on your financial stability.

While your first impulse might be to spend it, consider putting your money to smarter use. Hear from Heath Grossman, CFP® in this week’s Money Wisdom Question Series as he shares five smart moves you can make with your tax refund.

1. Pay Off High-Interest Debt

If you have any type of debt, using this extra money to pay it off can help reduce the amount you owe and the interest it accrues. One strategy is to use the snowball method, which involves paying off the smallest balances first. Or you could use the avalanche method, which focuses on paying off the highest interest debt first. It all depends on your financial habits and overall goals.

2. Contribute to Your Retirement Accounts

If you’re contributing to an employer-sponsored plan, you could increase your contributions to maximize your savings. You may see slightly smaller paychecks for a while, but your refund can help offset that change. If you’ve already maxed out your retirement contributions, you can use that money to fund another investment account.

3. Fund a Health Savings Account (HSA)

Putting money into a health savings account (HSA) is a tax-advantaged way to save for future costs. If you use those funds for qualified out-of-pocket medical expenses, they’re tax-free. Consider using your refund to take full advantage of this highly effective savings tool.

4. Build or Add to Your Emergency Fund

Setting aside money for unexpected expenses is a key part of sound financial planning. This emergency fund could be in a savings account or another easily accessible place.

A general rule of thumb is to have three to six months’ worth of expenses saved. Or you may prefer to save even more for peace of mind. As long as you’re building or growing that fund, either way is a smart use of your refund.

5. Make Charitable Contributions

Making a charitable contribution to an organization you value could be a meaningful way to support their mission. And if you’re age 70½ or older, qualified charitable contributions (QCDs) offer even more tax-efficient ways to give.

Keep in mind that while a tax refund may feel like a bonus, it means you had too much money withheld from your income during the year. If you consistently receive large refunds, consider adjusting your withholding with the help of a tax professional.