One-Third of Americans Expect to Do This with Their Tax Refund

By Heather Taylor0 Comments
If you’re receiving a tax refund this year and you plan to save it, you’ve got something in common with one third of the respondents in a recent Bankrate survey, summarized here.

According to the survey results, 34 percent of Americans plan to save their tax refund rather than spend it right away. Only 6 percent of respondents plan to use the refund to splurge on something, such as a vacation or shopping spree.

The age group cited as most likely to save the refund is the millennials, Time reports.

“This shows a sense of responsibility and overall financial savviness among young adults. They’re setting up a solid foundation for their future financial selves," said Sarah Berger of Bankrate in a statement. "It can be tempting to splurge with that refund, but saving it is so much smarter; consider it an investment in yourself.”

Of course, “saving” the money can be done several ways. One option is to work on maxing out the 2017 contribution limits for a retirement account, which might provide tax advantages. See the 2017 contribution limits.

Do you have more questions about how retirement accounts work? Schedule a free consultation with a Senior Account Executive.