Why Aren’t People Spending Their Tax Refunds?

Economists, politicians and people in general like to discuss the nation’s economy and where it stands at any given moment. There are many different points that are touched on and several aspects that are used as evidence to make important points. However, one indicator of the economy’s health that can never really be argued is consumer spending.

When spending is up the economy improves, as does the nation’s overall outlook. However, when spending is down, the economy slows and the outlook gets darker. To that end, what does it say about the economy that a lot of people are putting their 2015 tax refunds in the bank, instead of splurging on frills? It means consumers are still exercising caution and taking a wait-and-see approach.

According to the numbers, even though the average tax refund has been up 0.7 percent in 2015, about half of all taxpayers said they planned to save at least some of their refund money this year. That means they are going to be spending less. In fact, that percentage is as high as it’s been since the National Retail Association started conducting its survey 12 years ago.

Many other consumers, almost 40 percent, also said they are planning to pay off some debt when they get their refund check this year. In a separate survey by BankRate.com only 3 percent said they planned to spend all of their refund and 67 percent said they were going to use it to pay off debt.

So, while the news is good that taxpayers are getting a little more back this year, the news for the economy might not be as promising At any rate, with more money being returned to consumers, at some point it should make it back in to the economy. That means even though the boost might not come now, it could still come later.

Posted in
Australian Sports and Best Practices: Insights from Ian Robilliard

Australian Sports and Best Practices: Insights from Ian Robilliard

Introduction of Interview with Australian Sports legend Ian Robilliard In this interview, Alan Olsen discusses with Ian Robilliard Australian sports and best practices and coaching insights Transcript: Alan Olsen Welcome to American Dreams My guest today is Ian Robilliard. Ian, welcome to today’s show.   Ian Robilliard Thanks very much Alan. Really lovely to be…

The Tech Entrepreneur – Cory Warfield

The Tech Entrepreneur – Cory Warfield

Introduction: The Tech Entrepreneur, Cory Warfield shares business insights In this interview, Alan Olsen discusses success and achievements with Cory Warfield, famed tech entrepreneur. Transcript (software generated) Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Corey Warfield. Corey, welcome to today’s show. Cory Warfield Thanks so much…

Raising Children (and Grandchildren) in a Digital Age

Raising Healthy Children (and Grandchildren) in a Digital Age

Balancing Screen Time and Family Time. Written by Nathan Weller. The digital age has brought about significant shifts in society, perhaps the most important is how children are raised; especially how young people interact with technology. With the prevalence of smartphones, tablets, televisions, and computers, screens have become a ubiquitous part of our lives. Children…

Revolutionizing Athlete Development, Shona Eichorn CEO of NIAS

Revolutionizing Athlete Development, Shona Eichorn CEO of NIAS

Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams we have today Shona Eichorn. She is the CEO of the Northern inland Academy of Sports. Shona, welcome to today’s show. Shona Eichorn Thank you very much for having me. I’ve very privileged to be with you all. Alan Olsen So Shona,…