Half of Consumers to Put Tax Refund Into Savings This Year
Washington–More consumers will hold onto their tax refunds this year, according to a recent survey from the National Retail Federation.
The annual tax refund survey released by the NRF and Prosper Insights & Analytics, which asked 7,657 consumers about their tax return plans between Feb. 5 and 13, shows that of the 65 percent of taxpayers expecting a refund this year, 49 percent said they plan to put it into savings.
This is up from 48 percent who said the same thing last year and is the highest level in the 12-year history of the survey, NRF said.
Meanwhile, 35 percent said they will use it to pay down debt. This is in line with last year’s results and is well below the peak of 48 percent who said they would do so during the recession in 2009.
Only 22 percent said they will spend their refund on everyday expenses, which represents the second-lowest level in survey history, falling behind 2017’s 21 percent.
Another 12 percent said they’ll put the money toward a vacation, 10 percent will “splurge” on dining out, trips to a spa or apparel, nine percent will invest in home improvements and eight percent will use it for major purchases like a television, furniture or a car.
The NRF added that younger consumers, especially those between 18 and 24, are being more mindful about their money than any other age group, and while most in the demographic will allocate a portion to savings, they’re also more likely to use them for everyday expenses than the other age groups.
Fifty-nine percent of survey-takers had either already filed their taxes or expected to do so by the end of February, while 27 percent will file this month and 14 percent in April.