Many people look forward to getting their tax refunds this time of year, but you might be surprised at how they’re spending it. Instead of splurging, they’re using tax refunds to pay off debt.
Researchers at Bankrate.com found 34% of Americans were going to pay off debt, while 33% were going to save or invest it. Only 3% said they would use it on a fun vacation or shopping spree.
“Over the years things change through life, different stages, investments, things like that, but usually I get like an average refund. Nothing too crazy,” says Jerry Dufresne.
Millenials, or people who became young adults around 2000, were the age group most likely to expect a big tax refund. Experts generally discourage getting a big tax refund because it is equal to an interest-free loan to the government.