With hundreds of taxpayers already receiving their tax refunds, the options of where to spend the money are endless. A new flat-screen television, gaming console or new furniture may be tempting, but it shouldn’t be a first option. Local financial advisers suggest there are smarter ways to spend those refund dollars.

“The big issue that we sit down and talk to people about is a cash reserve,” said Mike Gertsema, president and financial adviser with Gertsema Wealth Services, a division of Raymond James.

Mr. Gertsema said everyone’s idea of a reserve will be different, but a realistic amount would be three to six months’ worth of expenses. Beyond a reserve, the No. 2 idea would be to focus on debt, particularly high-interest credit cards. “Build up a reserve so you don’t have to use the credit cards,’ Mr. Gertsema said.

The average tax refund for Missourians in 2011 was around $2,000. That’s a lot of money to many people, so the temptation to go on a shopping spree will be there. Taking the time to prepare for the future is a wiser decision.

“Once you step through (the process) from a logical point of view, you can stay away from emotional decisions,” said Dr. Rebecca Travnichek, a family financial education specialist with the University of Missouri Extension Service in Andrew County.

She said there is a laundry list of things that individuals or families could use their refund for. If 2011 property taxes weren’t paid in December, then that could be a good use. Unfortunately, by waiting to pay the property taxes in early 2012, those people won’t be able to claim the property taxes as a deduction on their 2011 taxes. Then there’s catching up on hefty utility bills, opening up an emergency savings account, paying off payday loans, fixing the car, making improvements to a home or investing in renter’s insurance.

After those things are taken care of, Dr. Travnichek said people can then start planning for the large purchases.

“When you establish what are our goals for the year, then all of a sudden you are looking forward to it,” she said. “It comes down to prioritizing.”

Jennifer Hall can be reached at jennhall@newspressnow.com. Follow her on Twitter: @SJNPHall.