"The bottom line is that it's not often that middle income families get a windfall like this, and this is a good opportunity for them to take advantage of some of the financial goals their families have rather than their consumption goals," said Martin, a professor of family environmental sciences and director of CSUN's Consumer Resource Center.

For the past four weeks, taxpayers have been receiving rebates from the federal government, up to $300 for single filers and up to $600 for married couples. The checks will continue coming through the end of September, depending on the last two digits of your Social Security number.

Martin said that if you owe money, the best use of this tax rebate is to pay off some of your debt.

Paying off an 18 percent credit card is equivalent to earning a 25 percent return for a person in the 28 percent tax bracket, which most Americans are in.

"That's because you'd have to earn a 25 percent return to be left with 18 percent after taxes," Martin said. "Unlike investments, like stocks and bonds, the amount that you'll earn by repaying debt is guaranteed and tax-free."

If you don't have any outstanding consumer debt, Martin said "congratulations" and suggested investing your tax rebate.

He said there are a number of low-cost investment alternatives available, including mutual funds, that require $1,000 or less to open an account, and hundreds of stocks with direct purchase plans.

In addition, he said, if you add a few hundred dollars more you could invest in U.S. Treasury securities (bills, notes and bonds). They are available in $1,000 increments, as are unit investment trusts and corporate bonds.

"Don¹t think a $1,000 investment will really matter? Think again," Martin said. "With an 8 percent return, your money will double in nine years. At the end of 20 years, your one-time $1,000 investment will grow to $4,660."

Martin said you could also use your rebate to fund part of your 2001 IRA. You are allowed to contribute up to $2,000 maximum to any IRA or combination of IRAs. In the years 2002 through 2004, the maximum IRA contribution amount will increase to $3,000 and eventually rise to $5,000 in 2008 and later.

Martin said another good option is to "invest in yourself, or as economists like to say, 'build your human capital.'"

"Take a course in other job training experience to improve your knowledge or skills," he said. "It could eventually lead to a raise or promotion and pay back your tuition payment many times over."

For more information about investments or saving ideas, Martin suggested people call CSUN's Consumer Resource Center at (818) 677-4726 or 677-4727.

California State University, Northridge has more than 29,000 full- and part-time students and offers 63 bachelor's and 51 master's degrees. Founded in 1958, it is the only four-year university in the San Fernando Valley and the third largest in the 23-campus CSU system. The Western Association of Schools and Colleges recently said CSUN "stands as a model to other public urban institutions of higher educationŠ"