Experts advise caution with that tax refund

Good news for the economy -- consumers are shopping again. Bad news for your finances if you're one of them, succumbing to pent-up desires and whipping out that credit card too enthusiastically. Especially if you're envisioning a tax refund as a safety net.

There's a better order in which to allot that refund money than paying off fresh splurges, says Roberta Schroder, chair of the economics and finance department of Nassau Community College. (That's assuming you're not in extreme debt and do have the luxury of choice.)

Emergency Fund. Think first of taking some of your refund money to replenish this, Schroder says. Such a fund provides liquidity for those inevitable occurrences - a sick child or pet, a broken water heater - that can lead you to increase your debt.

Debt. Next, determine which credit card balance is costing you most, which is so much easier to do this year with those new, transparent statements. Send in a bundle to pay down your priciest account. But if you're one of the many people who see wiping out high debt to a zero balance as a green light to start using the card again, you might be better off spreading the payment out among several high-priced accounts.

Play.  Finally, yes, you do get to have fun. Plan on using 5 to 10 percent of your refund -- again, dependent on your circumstances -- to spring for something nice, especially if your refund is higher than usual.

The Internal Revenue Service says the average refund is up by $266. You can say, "I worked really hard last year. I'm giving this to me," says Schroder. Another option? Mother's Day is on the horizon.