Credit Card News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Tax Refunds Slated for Big Purchases

Tax Refunds Slated for Big Purchases

By
Add to Favorites:
Tax Refunds Slated for Big Purchases
March
20

If you’re planning on making a big purchase and using your tax refund to get it, you are not alone according to a new study by new SunTrust Banks, showing that 25% of Americans will be doing the very same thing. And buying it even before they get their refund.

When it comes to millennials (aged 18 to 34), the number looking to make a big purchase with their refund jumps to 36%, and 40% of Gen Xers (aged 35 to 44) will be doing some major shopping as well.

The season to spend and to save

Last year people who had a refund, received one totaling $2,735 on average. The study found that 60% are planning to spend half or more of their refund. Yet this number also suggests that saving is also a priority since many are planning on saving at least some of it.

For SunTrust this savings trend is a good one. “We know from previous research that 51 percent of Americans don’t have $2,000 on hand to cover an emergency,” said Brian Nelson Ford, financial well-being executive at SunTrust. “Tax refunds present a perfect time to quickly fund a confidence account that can be used for emergencies.”

Tips for managing refunds

What is your best bet when getting a lump sum of cash so you aren’t left wondering where it went? SunTrust suggests not spending it until you have it in your hand or bank account, this way if you don’t get hit with credit card fees if your refund is delayed.

Looking to save? Then have the money put it into your savings account, or even get some advice from a professional about how to invest it or pay off debt. Then again you might want to think about whether or not there are expenses coming down the pike that you might want to save for, like car or roof repairs.

Last, but not least, they suggest going with the 50/20/30 formula, which basically means using 50% to pay off debt, putting 20% in savings and spending 30% – this way you hit all the sweet spots.
The Sun Trust survey was carried out online by Harris Poll in the U.S, from January 10 to12, 2017. They queried 2,174 U.S. adults who were 18 years and older.

Add to Favorites:

Related News:

Visa and StubHub Upping the Ante
Visa and StubHub Upping the Ante

By Dar Dowling, Posted: March 17, 2017

Visa and StubHub have been partners for a while, but they have decided to take their partnership to another level by combining Visa checkout with Stubhubs ticketing system. Continue reading
Synchrony Financial Teams Up With Zulily

By Dar Dowling, Posted: May 24, 2017

Synchrony Financial has inked a multi-year deal with Zulily, an e-commerce company, to provide them with a private label credit card. Continue reading
New American Express Card Coming to Navy Federal

By Dar Dowling, Posted: May 23, 2017

Navy Federal Credit Union and American Express have partnered up and will be introducing a new American Express credit card: the Navy ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Bonus Miles - For example, if you earn 20,000 Miles, you get 40,000 Miles. We'll match all the Miles you've earned at the end of your first year.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee
For Bad Credit