More Americans plan on saving tax refund
MISSOURI (KFVS) - If you're getting a tax refund this year, chances are good you will put a large sum of that in your savings account instead of spending it.
Some 66 percent of individual taxpayers will get a refund check in 2016. In fact, Bloomberg says Americans will get back $330 billion in tax refunds this year.
According to a study released by the National Retail Federation, 49.2 percent of those expecting a refund plan to save the money. That's the highest percentage since 2007.
"Americans this year see refund season as a time to improve their financial health … Money saved is spending potential down the road," NRF President and CEO Matthew Shay said.
Decent news for retailers, though, not everyone will store their money away for later.
Here's a break down of the numbers:
- 49.2 percent plan to save the money
- 34.9 percent will pay down debt
- 22.4 percent will spend everyday expenses
- 11.4 percent plan to book a vacation
- 9.2 percent plan will buy a television or car
- 8.3 percent plan to indulge on a spa or night out
However, personal finance experts do suggest using a little of your tax return to splurge. Doing so helps you avoid binge-spending later.
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