Tax returns were due yesterday in the States. So if you didn’t do them you are SOL and you should probably stop reading now. With the average refund this year expected to be around $3,000 per person this could mean a nice little bump in consumer spending power. But should retailers really get excited over the influx of cash coming their way, or will we finally all be responsible adults and do something wise with our money?
Where’s it all going?
Well, bad news for retailers. According to a survey by Bankrate.com, those receiving a refund are trending towards the more responsible side. Of all the respondents, 30% are paying off debt, 28% are saving their money, and 26% are putting it towards basic necessities. Only 7% plan to actually splurge on purchases - which includes both shopping and vacationing. Man, growing up is hard.
Of that small percentage that are having a bit o’ fun with their refund, where is it all going? Well, I always like to start with a little office poll to find out these things. My coworker Elizabeth plans on vintage clothing shopping, particularly the silk kimono she’s been eyeing up in Brooklyn. We asked our intern, too, but at the moment she was accepting a few packages from UPS and our question was already answered. Personally I invested in a leather pair of mules that I plan on wearing approximately 75% of Spring. It’s all about ROI.
If you are part of that lucky 7% (or irresponsible? Someone tell me how to adult), go have at it. But if you want to be a bit wiser with your money, we have some suggestions for you on what to do with your refund.
So if you’re expecting a big return after this tax season and not sure what to do, don’t worry. It doesn’t just have to be stashed away like a wise adult may advise you to do. As it turns out, you can be both responsible and fashionable ;)