What Will You Do With Your Tax Refund?

Posted on 07. Apr, 2006 by Jason Guthrie in Taxes

There are generally three ways to look at a tax refund:

1. A way to force savings
2. A well-deserved shopping spree
3. Finally getting back what Uncle Sam stole

Personally, I try and arrange my exemptions so that I don’t receive a huge tax refund. Although the refund is a “nice suprise” I’m not a fan of giving the government an interest-free loan. However, many people look to their tax refunds as a chance to buy “that thing” that they’ve been waiting to buy but just didn’t have the money.

However, this year 70 percent of consumers responding to a survey conducted by Roper Public Relations on behalf of TrueCredit.com, said they would save for a rainy day. Apparently many are noticing that the economy isn’t as stable as everyone thought and are comforted by the fact that a little money stashed away might help them in a time of crisis.

Other findings from the survey, which allowed respondents to select more than one of six possible responses explaining how they would allocate their total refund dollars, include:

• 57 percent report they will buy something they need;
• 40 percent would use their refund to pay down their mortgage or other bills;
• 39 percent will pay off credit card bills;
• 34 percent will take a vacation;
• 31 percent would splurge on something fun.

My question is: what are you going to spend your refund on??