With a little foresight, you can maximize the benefits of even the paltriest year-end bonus.

Veronica Aaron, of the Householder Group in Orange, Calif., a financial consulting firm, suggests that planning for the future should take priority over lifestyle improvements and indulgences.

“A holiday bonus can take care of things that have been bothering you all year, like paying down credit cards or home-equity lines,” Aaron says.

Other smart options for spending a bonus:

¢ Contributing to a Roth IRA or spousal IRA.

¢ Paying life, health or long-term care insurance premiums for the year ahead.

¢ Giving individual annual gifts up to $12,000, or $24,000 for a married couple, which would be free of federal gift taxes.

¢ For younger workers, prepaying at least part of a life insurance premium or putting even as little as $500 aside in a children’s education fund.

¢ Pumping money into an emergency fund.

Note to shopaholics: Postpone spending the bonus until you actually have the money.