Tax refunds usually mean a slight bump in consumer spending, and this usually means great news for us. But what are Americans spending their tax refunds on?
For retailers and other cash-based businesses, tax refund season is a perfect time to do promotions, given that around 20% of the $3,120 (around $624) will likely be spent on splurges and that less then half (46.9%) will be placed in a savings account. Businesses that rely on travel and tourism spending will also be interested in the $405.60 average from tax refunds that can expect to get.
How else will Americans spend their tax refunds? Credits to DriveTime.
Observations
- Almost 4/5ths of tax refund spending goes into savings and debt service together.
- If you were hoping people don’t know how to prioritize, sorry to disappoint you.
- The source doesn’t specify if “savings” includes other investments.
- Men aren’t practically all that different when it comes to spending habits.
- The stereotype about women spending more is categorically true, but the difference is small enough not to matter in most contexts.
- Men are more likely than women to save their tax refund money, but not by much.
- Men are more likely to spend their tax refund on big ticket items.
- A more useful data set for most entreps should be a bit more localized, and not one that looks at habits throughout the United States.
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