News Feature | March 31, 2015

Americans Are Guarding Their Purse Strings Tighter This Tax Season

Source: Innovative Retail Technologies
Christine Kern

By Christine Kern, contributing writer

Survey finds more consumers saving, not spending, their tax returns in 2015.

Americans are guarding their tax returns more closely this year with an eye toward savings, not spending, according to the National Retail Federation’s annual Tax Returns Survey. The survey, conducted by Prosper Insights and Analytics, found that while 65.7 percent of consumers surveyed were anticipating a refund, 47 percent of them were planning to tuck that money into savings accounts, the highest percentage in the survey’s history.

“Americans are thinking of the future, and remaining financially secure is a big part of that,” stated NRF President and CEO Matthew Shay.  “A check from Uncle Sam gives consumers the ability to pay down debt, add a cushion to their savings or splurge on a vacation or big-ticket item.”

According to the IRS, the average check issued through Feb. 20 was $3,120.

After savings, respondents listed paying down debt (39 percent) and everyday expenses (25.1 percent) as the main uses of refund dollars. 

But retailers should not give up all hope.  Thirteen percent reported that they plan to splurge on a vacation, 10.5 percent will make a major purchase, and another 10 percent are anticipating a dinner out, new clothes, or spa or salon treatments.

And younger taxpayers are more likely to spend than save, with more than 32 percent of them planning to use their refunds for daily expenses and 15.4 percent planning a major purchase with their windfall from Uncle Sam.  This is good news, considering that 67 percent of adults between 18 and 29 anticipate a refund this year, compared to just 40 percent of adults 50 to 64. More than half of Americans ages 25-34 (53.2 percent) plan to tuck away their refunds in savings or use their refunds to pay down debt (47.6 percent).

The survey polled consumers between February 3 and February 10, and is designed to measure consumer behavior and shopping trends as they direct correlate to tax returns.