Americans Planning To Save Tax Refunds

Ann-Marie Vazzano

According to the National Retail Federation’s annual Tax Returns Survey conducted by Prosper Insights and Analytics, 47% of those expecting a refund plan to save the money, the highest percentage in the survey’s history. Nearly two-thirds of those surveyed are expecting a refund.

Of those surveyed, about 39% will use their refunds to pay down debt and 25% plan to use it for daily expenses. Another 13% say they will splurge on a vacation and about one in 10 plan to spend it on a major purchase like a television or car.

More than half (54.9%) of young adults are planning to put refunds into savings. However, nearly one-third will spend it on everyday expenses and more than 15% will make a major purchase. Of Americans ages 25-34, nearly half (47.6%) will use their refunds to pay down debt. GP