Fewer workers in the United States plan to use their tax refunds to pay off bills and more plan to put the money into savings, according to a CareerBuilder survey.
As a reflection of a more stable economy, 46 per cent said they plan to use their tax refunds to pay off bills, down from 56 per cent last year. In addition, 36 per cent of the 3,910 workers surveyed will use their tax refund to augment their savings accounts, up from 34 per cent who said the same last year.
Workers may be feeling a little more fiscally secure because fewer are living paycheque to paycheque. While 61 per cent said they live paycheque to paycheque, this is down from 77 per cent who said the same in 2010.
“Even though fewer workers are living paycheque to paycheque and are saving more, workers’ wallets are still feeling the strain of the past few years,” said Rosemary Haefner, vice-president of human resources at CareerBuilder.
Respondents also said they will use their refunds to:
• make home improvements
• go on vacation
• pay back money they owe to people
• invest it
• buy a car.
© Copyright Canadian HR Reporter, Thomson Reuters Canada Limited. All rights reserved.