Tax Refunds Means More Spending, Saving, and Doing for Americans

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From vacation to education, American taxpayers have more options than ever before to allocate their incoming funds.

Every year thousands of businesses advertise special post-tax season sales in an effort to garner a portion of America’s big payday. The most popular promotions across the board are the Tax Day freebies. While it may seem counterproductive to give things away, businesses known that if they can associate their name with something positive in times of stress – such as tax day – consumers are more likely to patronize them all year long.

Some of the most popular tax day giveaways include a free 15 min. HydroMassage (available at Planet Fitness), free shredding service from Office Depot, and even a complimentary dinner at Hard Rock Café.

Other businesses opt to slash prices on large purchases to convince buyers to take the plunge. Many auto dealerships across the nation offer vehicles at or near cost, appliance and electronics retailers boldly display their goods with low down payments, and vacation destinations will gladly check people in for up to half price – as long as they’re willing to prepay.

But, not all refund holders will splurge. According to bankrate.com, the average tax refund is over $2500. The site suggests that savings will also be hot in 2014. Families have numerous options to put their money to good use aside from traditional retirement accounts.

A large tax refund may offer the opportunity to create an emergency reserve for expenses such as food, utilities, and mortgage. Additionally, consumers can save thousands of dollars over the course of a credit card repayment cycle by paying down their balance. Those looking to build further into the future typically elect to invest in their careers by spending money on continuing education programs. Other ways to save in the long run include paying for a home energy audit or tackling energy-consuming maintenance projects.

 

 


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