NRF: Consumers will save tax refunds

Washington, D.C. – Retailers looking forward to consumers receiving their tax refund checks this year may be setting themselves up for disappointment. According to a new survey from the National Retail Federation (NRF) and Prosper Insights & Analytics, close to half (47%) of the 66% of Americans expecting a tax refund this year plan to save it.



Saving was by far the most popular option for tax refunds among survey respondents. The second-most-popular option was paying down debt (39%). Twenty-five percent of consumers will use their refund to pay for daily expenses, while 11% will use it for a large purchase such as an auto (more than one response permitted).



Among consumers between the ages of 18 and 24, 55% intend to save their refund, and 34% will pay down debt. And among those 24 to 35, 53% will save it, and 48% use it to reduce debt. This is the highest level of savings reported by this annual survey since 2007.



“Americans are thinking of the future, and remaining financially secure is a big part of that,” said NRF CEO Matthew Shay.