If you are one of the lucky workers to receive a Christmas bonus this year, you probably want to splurge and spend it on something frivolous. But in light of the ongoing recession and high unemployment rate, perhaps there are better things you could—and possibly should—do with that extra money. Take a small amount of that bonus and spend it on something fun, but follow these tips on how to make the best use of the rest.

If you don’t already have a fund saved up for the “just in case” emergencies or possibility of a lay off, start such a fund now. If you do have one, why not add a bit more to it? It never hurts to have extra cash around for those unforeseen situations that come up.

Another great idea is to pay down any debt you have. Apply your bonus to those credit card balances or student loans. Make an extra payment on your car loan or mortgage. Another great idea is to use the money to make an update to your home—building equity never hurts.

Lastly, if you aren’t in debt and can afford to share, donate a portion of your bonus to a well-deserving charity. Many people are out of work and could use the support of a charitable organization this holiday season, so a cash donation from you to one such cause could help someone else have a merrier Christmas this year.