A new survey found that 69% of Americans are getting a tax refund this year. Tax refunds can feel like “found money.” But are you going to use yours to improve your finances, or as a FUN REWARD?
In a new poll, most people claim they’re going to use their tax refunds RESPONSIBLY. (Which is good to hear, in ANY economy.)
33% say they will drop the money into their savings account.
20% say they will use it to pay down debt.
17% say they will use theirs on “necessities.”
10% say they will invest the money.
8% say they will use theirs for “home improvement.”
6% say they will “splurge,” and blow the money on a shopping spree, maybe for nice headphones, fancy skincare, a new TV, video games, or a luxurious night out on the town.
And 2% say they’ll put it toward a “major purchase,” like a car or a new home.
People making less than $50K were most likely to say they’re using their tax refund money on everyday expenses. Households making $50K to $100K are more likely to use it on paying down debt. And those making over $100K are most likely to say they are investing their refunds.
If you’re wondering, the average tax refund is around $3,500, but that really depends on your situation, like how much you are withholding, and if you have any write-offs or other tax-free benefits.
(Also: It’s okay if you have modest plans for a MODEST return. Like this person last year who got a check from the IRS for $1.00.)
(Experian)
