3 Creative Ways To Invest Your Tax Refund in 2025
Written by
Josephine Nesbit
Edited by
Angela Corry
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Getting a tax refund? Instead of following the usual financial advice or letting the money disappear into a shopping spree or everyday expenses, why not explore alternative ideas?
If you want to put your 2025 tax refund toward something different, these three creative ideas may be just what you need.
Start a Business
You can put your tax refund toward starting your own business. This could be freelancing work, starting an Etsy shop or launching an e-commerce brand. Depending on the business, a few thousand dollars may be enough to cover startup costs, such as a website and some basic supplies.
There could also be additional tax advantages. The IRS allows businesses to write off supplies, bank fees, contract labor, transportation and more business expenses.
“If you’re a rideshare driver, for instance, use the money as a down payment on a new car. Then claim the car as a business asset when you file your taxes next year — just remember, you’ll only be able to write off expenses related to the business use of the vehicle, not the personal use,” wrote Kari Brummond, an accountant with TaxCure, in an email.
Learn a New Skill
Turn your tax return into a stepping stone for growth by investing it in a valuable skill. You could take traditional courses at a local university or use an online platform like MasterClass which offers pre-recorded tutorials and lectures from experts.
Online language learning platform Preply surveyed 2,500 Americans on new skills they’re learning in 2025 and found that current abilities and financial aspirations strongly influenced the drive for Americans to learn new skills in 2024. Half (50%) felt that their existing skill set fell short of helping them achieve their goals
Teach Kids Financial Literacy
Financial education is often lacking in the American education system. According to a report by the Global Financial Literacy Excellence Center and TIAA, Gen Zers were only able to answer 37% of questions about topics like borrowing, investing and saving.
“We need to move beyond kids’ financial knowledge… it should be about impacting their financial behavior and choices in the future. And that only comes from real hands-on experience,” wrote Victor Wang, CEO at Stockpile, in an email.
“Parents can use their tax refund as a starting point to equip their kids with the skills to be comfortable talking about money, make smart financial decisions and teach kids (at the earliest possible age) about investing for long-term wealth building,” Wang added.
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