According to the National Retail Federation’s annual Tax Returns Survey, conducted by Prosper Insights and Analytics, 47% of consumers who are expecting refunds plan to put the money into savings, the highest percentage in the survey’s history. NRF noted that 65.7% of surveyed respondents expected a refund.
As for refund distribution, 39.1% of survey respondents said they would pay down debt and 25.1% said they planned to use the money for daily expenses. On the other side of the coin, 13% said they would splurge on a vacation and 10.5% said they would spend on a major purchase like a television or car.
Young adults are particularly determined to sink their refunds into savings, as 54.9% plan to put refunds into savings. At the same time, 32.2% of young adults stated that they would spend on everyday expenses and 15.4% would make a major purchase. As they consider how to disperse their refund money, 53.2% of Americans ages 25 to 34 said they would put to pay down debt.