How do you use your tax refund?

Every month, part of your paycheck is sent straight to the government to pay your taxes. But at the end of the year, most people owe less than they’ve already paid – so they get money back from the government. These tax refunds are a huge influx of money for many American families.

If you’re struggling to save every month, your tax refund can be a great way to get started. After all, without knowing it, you’ve been putting away money every month that you can’t touch! Even if you already have a plan for your tax refund, putting some of it into savings can go a long way.

How Savers Used Their Refunds

SaverLife Savers received an average of $3,464 in refunds in 2018. Here’s how they said they used that money:

As you may have noticed, these numbers add up to more than 100%. Savers often told us they used their refunds for multiple goals.

One Saver named Rocio told us, “My tax refund is a blessing because I can tell my son that I am able to pay his school classes and education.” Another Saver named Cortney said, “I wanted to save my tax refund, but I had to have some car repairs done, so most of my tax refund went toward that.”

Recommended Articles

How to Maximize Your Savings During Tax Time

Taxes can seem daunting. But there are a lot of free resources out there to help you file your taxes for free, get reliable help with your taxes, take advantage of tax credits that you qualify for, and even win prizes this tax season! Here are four resources you should be aware of for tax-time.… Read more

6 Steps for When Your Credit Is Denied

  First, let’s start with the facts. There’s a widespread fallacy that a score determines whether or not you get credit. The truth is that lenders use a variety of factors to make credit decisions. These factors include your FICO scores, but also take into account your income, your employment history, and your credit history.… Read more

What is private mortgage insurance?

If you get a conventional loan and make a down payment of less than 20 percent of the home price, you are required to purchase private mortgage insurance (PMI). PMI protects the lender (not you) in case you fail to make your mortgage payments. Banks, savings associations, credit unions, and mortgage companies make conventional loans… Read more