Tax refunds are for saving, not shopping this year

A growing number of consumers plan to put money they receive from their tax refund into their savings accounts.

The National Retail Federation’s annual Tax Returns Survey found 49.2 percent of those expecting a refund this year plan to save the money rather than spend it right away — the highest percentage in the survey’s history.tax form

“Consumers are boosting their confidence and building their spending power as they set aside their checks from Uncle Sam,” NRF President and CEO Matthew Shay said. “Americans this year see refund season as a time to improve their financial health by using their refunds to get ahead on savings goals, pay down debt and plan for purchases in the future. Money saved is spending potential down the road.”

In addition to savings, 34.9 percent plan of those surveyed plan to use their tax refunds to pay down debt, according to the survey, which was  conducted by Prosper Insights and Analytics.

The survey also found: 22.4 percent will use the refunds for everyday expenses; 11.4 percent plan to book a vacation;  9.2 percent plan to spend on major purchases like a television or car; and 8.3 percent planning to indulge on a purchase like a salon or spa service.