More consumers than ever are resisting the temptation to spend their refund from Uncle Sam this year.
According to the National Retail Federation’s annual Tax Returns Survey, 49.2 percent of those expecting a tax refund plan to save the money — the highest percentage in the survey’s history. Nearly two-thirds of those surveyed expect a refund.
Cindy Hilkin, consumer lending consultant supervisor at Dupaco, isn’t surprised that more consumers are saving their refunds.
“Families have been living paycheck to paycheck, and you learn from that,” she said. “This lump sum is a good cushion, because life happens and things come up.”
If you’d like to get the most savings from your tax refund, here are four financially sustainable ideas:
- Save for retirement: An Individual Retirement Account (IRA) is a simple way to save for retirement. And it’s not too late to contribute to a Traditional or Roth IRA for the 2015 tax year. Qualified individuals can make contributions until Monday, April 18, 2016. For more investment direction, contact Dupaco Financial Services.
- Save year-round for the holidays. With Dupaco’s Holiday Club, you can systematically save for the giving season all year long. On Oct. 31, the balance will be deposited into your checking account (or your savings account if you do not have a Dupaco checking account).
- Intentionally save for your goals: With You Name It Savings Accounts, you can name them whatever you wish, and systematically save for your needs or wants. These accounts can be a great tool for investing in your future, which might include further education or home improvement projects to increase your home’s value, Hilkin said.
- Save for your children. Whether you establish a 529 college savings plan or open a savings account, it’s never too early to begin setting aside money for your children, Hilkin said.
By Emily Kittle