NEW YORK (CNNMoney.com) - If you're like most Americans, your tax refund will amount to about $2,400 this year. Need some ideas on how to spend it? Some retailers are hoping to give you some hints.

But here at 5 Tips we're going to tell you all about the ways marketers are trying to get their paws on your tax return, and what you can do to invest your cash wisely.

This year about 70 percent of Americans are expecting a check from Uncle Sam, according to a survey by the National Retail Federation. And of course, companies are all too eager to get in on the action.

Turbotax has a program where you can put a portion of your refund directly on to gift cards from retailers like Starbucks or Bed, Bath and Beyond.

Tax preparation firm Jackson-Hewitt is offering customers iPower Cash Cards. It allows taxpayers to have their refund loaded onto a prepaid credit card.

Of course, you'll be paying for the privilege. It will cost you $30 to get your refund on the card in the first place. Even car dealerships are offering to prepare your tax returns and issue you a refund anticipation loan that can be used as a down payment on a car. This will cost you about $150-$225 according to the company that processes the loans. All you have to do is show up with a Social Security card, a drivers license and a W2 form.

Your tax refund is not a little "perk" that the government is distributing. It's your hard earned money. And if you're overpaying on your taxes, like most Americans do, you're only hurting yourself.

A tax refund means you've been lending your money interest free to the government. And we're talking a lot of dough. Americans pay almost 30 percent more on their taxes than they need to.

A good rule of thumb to figure out if you're giving away too much moolah is to go back to see how much money you had withheld from your paycheck. If that number is 25 percent more than you owe in taxes (and your financial situation has not changed substantially), that's a clear sign you're just giving away cash.

If you've recently bought a house, had kids, gone back to school or got married, you're likely in need of a little fine tuning to your withholding. You can also check out a withholding calculator on the IRS's Web site and search for withholding calculator.

To avoid overpaying, you should adjust your W-4 every year. Your W-4 is supposed to indicate how much money should be withheld on your paycheck. The problem is that people don't keep their W-4 updated, according to Peter Sepp of the National Taxpayers Union.

If you've gone through a major financial change, you should contact your human resources department and adjust your withholding. "A lot of people just sign on the dotted line when they first start working, but that's money you could be putting to work year-round," Sepp says.

Almost half of people getting a refund this year plan on using their tax refund to cut down their debt. That's the spirit!

Whittling down your credit card debt is particularly important with interest rates continuing to head higher.

Go through your credit cards and pay off the card that has the highest interest rate. Using the refund to pare down your debt makes better financial sense than putting the money into a savings account because you're paying off interest of, say, 12 percent or more, while a money market mutual fund pays you only about 4% (or less) on your money.

And if you're able, you may think about making an extra payment toward the principal on your mortgage. Trimming an extra $1,000 or more off your principal now can save you thousands of dollars in interest payments over the next 30 years. You can pay off a 30-year mortgage in 22 years, according to Bob Moulton of Americana Mortgage, by adding just one extra mortgage payment a year.

It's not sexy or savory, but putting money away for college is one of the smartest things you can do. Especially considering that the costs of college increasing more dramatically than inflation, you'll be glad you did.

For families who have the luxury of time, you may want to look into Coverdell ESA plans. In this savings vehicle, your money grows tax deferred. However, there is a $2,000 contribution limit annually (just about the size of that refund!).

Or, consider Education Savings Bonds. This is a risk-free investment where you can contribute up to $60,000. For more information, go to the Department of Treasury's Web site.

And while 529 college savings plans have a lot of pitfalls, Morningstar recently published its list of best state plans. Among those that made the list: Alaska T. Rowe Price College and Michigan Education and Utah Educational.

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Gerri Willis is a personal finance editor for CNN Business News and the host for Open House. E-mail comments to 5tips@cnn.com.