According to the latest survey conducted by leading personal finance website GOBankingRates.com, three out of four Americans expecting a tax refund this year plan to save the money or use it to pay off debt.
“It’s really encouraging to see, however, that most people are planning to use a tax refund to better their financial situation by saving or paying off debt,” she said. “Using a tax refund this way will buy the taxpayer more financial security and peace of mind, instead of a one-off splurge that soon loses its value or is forgotten.”
- Only one in five Americans plans to spend tax refund money.
- Older respondents are twice as likely to not expect a tax refund as their younger counterparts.
- Respondents ages 18 to 24 are over twice as likely as baby boomers to splurge or make a major purchase with their refunds.
- Of those expecting a tax refund, women selected “pay off debt” 20 percent more frequently than men did.
For more insights on the survey findings, visit: Elyssa Kirkham, the lead GOBankingRates finance reporter on the study.