Refund checks can fuel splurging Lynchburg News and Advance
For most people, but especially those living paycheck to paycheck, the extra dollars that come every spring with an income-tax refund are a welcome boost.
For some people, the sighting of the Internal Revenue Service refund check is an opportunity to save for a rainy day. For others, it’s a chance to splurge.
“I’m going on a cruise this summer as a treat for myself,“ said Elizabeth Leatherland, a 21-year-old junior at Virginia Commonwealth University who works on campus.
Whether saving or spending, financial counselors advise people to have a plan for their windfall. Leatherland is doing both, socking away most of her $10,000 refund in savings, while splurging on the vacation cruise with her boyfriend.
Leatherland is not alone.
After several tough economic years, more Americans plan to be a little looser this year than they have been recently with their tax refunds.
About 12.5 percent of people receiving refunds expect to use that money to make a big purchase, including televisions, furniture or new vehicles, according to a survey by the National Retail Federation. About 10 percent said they would use it for a vacation.
