Our taxes were completed last month and we have already received our tax refund which was directly deposited into our account. We are using our refund for a vacation (trip to visit the relatives) later this year. Since we don’t have debt, our emergency fund is fully funded, and our insurance is already set we don’t have much guilt about this expense.
There have been quite a few articles lately by financial types who advocate the “responsible” things to do with one’s tax refund. Everything from paying down debt, opening an IRA, or even starting an emergency fund is advised.
A recent article released poll data regarding the use of tax refunds:
In a USA Today-Gallup Poll, 62 percent of those questioned said they plan to save their tax refunds or use them to pay off major bills.
Principal Financial Group found 84 percent of those polled said the same, as did 72 percent of people questioned in a TransUnion poll.
But do people really do what they answer to in polls? Retail spending does see a rise in the months of March, April, and May, due to the spending of tax refunds so apparently some people are opting to spend that money!
I went on an internet quest to find folks talking about how they have spent their tax refunds and found some really interesting items. Granted, I did find quite a few people paying down debt or putting the money into a savings account, but others spent freely without regard to what the “experts” are recommending. Here are some things I found people spending their refunds on:
Accessories like expensive purses seem to be a hot purchase as well as spending on vacations.
One couple is putting their tax refund into EmigrantDirect.com savings account for use later on this year to purchase a vehicle.
Some of the frugal crowd are paying down credit card debt, increasing their savings, and buying a new computer monitor.
A wife says her husband is buying her a new laptop computer.
Remodeling the home and saving for wedding expenses are how some people here are choosing to spend their refunds.
New camera gear is top priority here as well as new flooring for the kitchen, paying off a student loan, taking a Disney vacation, and buying a travel trailer!
A new bike for commuting to work will use up all of one gal’s refund.
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2 responses so far ↓
1 Karen // Apr 18, 2007 at 1:53 am
Wow. I must admit I was pleasantly surprised to find myself mentioned in your blog! Now I just can’t decide if I should feel guilty about doing the ‘irresponsible’ thing with the refund money!
It was an interesting post… thanks for including me! I hope your family enjoys your vacation later this year. Sounds like fun!
2 Not Made Of Money // Apr 18, 2007 at 7:05 am
Karen,
Thanks for stopping by. I didn’t mean to imply that people were not being responsible, but rather that folks are spending their tax refunds on some interesting things. I think it is great that your husband is buying you a laptop. Have fun shopping for it!
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