According to a recent survey by Travelocity, dream vacations top the list of “wouldn't it be nice to splurge” uses of tax refunds.
When taxpayers were asked if they would rather use their tax refund on something like repairing the family automobile or splurge on something special for themselves, just about 30% went for a little self-indulgence. Millennial's opted for something special by an even wider margin of 43%.
So what is a self-indulgent use of a tax refund? Some popular answers by survey respondents included: a new outfit or tech gadget at 18% and 11% respectively, and by far the most popular choice was a dream vacation with 47% of respondents selecting this option.
While we don't recommend blowing your entire tax refund on a Dream Vacation, a more fiscally responsible option might be to take a portion of your tax refund and use it to pay down high interest debt and take the remainder for a down payment on that Dream Vacation!
Here are some other options for that tax refund:
- Add to your Emergency Fund
- Take additional training or coursework for job advancement
- Open a 529 College Savings Account
- Open a Dream Vacation Savings Account and start planning your next trip
Readers: How about you? What would you do with a tax refund?