What Will You Do with your Tax Refund?

Many Americans have plans for their 2013 tax refunds, according to a new survey by John Hancock Financial Services.

More than half of those surveyed expect to get a tax refund this year, and 17% of them plan to spend it. Of those, 56% plan to spend theirs on a vacation. That was the #1 category for splurging, and up from 36% last year who said they planned to use their refund check to finance a vacation.

John Hancock said that 13% of the refund spenders plan to treat themselves to a luxury item, up from nine percent in 2013. A more practical group (23%) plan to spend theirs meeting basic household needs.

The majority of refund-getters aren’t planning to spend their government check. John Hancock said that 63% of the non-spenders say they will put their refund into a savings account, while 29% plan to pay down debt.

These results indicate that at least some Americans (the survey polled affluent Americans), are feeling a bit more confident this year than last. However, it also shows that even affluent Americans are still being cautious with their money. After all, only 17% are planning to spend their tax refund.

Copyright Today’s Credit Unions