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.”
Julia is part of EARN’s Research and Innovation Team. If you join SaverLife, you may get emails from Julia asking you to help with our research. These are always optional (and you can unsubscribe at any time), but your voice helps us improve SaverLife and understand how we can better serve our members.