Credit Card News

Advertising Disclosure is an independent, advertising-supported web site. 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. 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

Add to Favorites:
Tax Refunds Slated for Big Purchases

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
New Upgrades with Alaska Airlines

By Dar Dowling, Posted: March 29, 2017

Alaska Airlines has announced that Virgin America, which it acquired in late 2016, will start using Alaska’s logo and name starting at some point in 2019. But along with this integration comes expanded amenities, many of which Virgin ... Continue reading
Discover Number One in Temkin Survey

By Dar Dowling, Posted: March 28, 2017

Discover took the top spot in the 2017 Temkin Experience Ratings ratings, a study looking at which credit cards give their cardholders the best customer experience. American Express and USAA came in a close second. The survey also found ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
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
Guaranteed $500 Unsecured Credit Limit
For Bad Credit