NEW YORK (4/16/13)--Believe it or not, young adults are more likely to save their tax refunds than people in other age groups. A recent survey by Manilla.com, an account management service, found that 46% of respondents ages 18 to 23 plan to save their refund this year, versus 25% of older respondents. Older respondents were more likely to use refunds to pay off credit card debt or to pay other bills (Manilla.com
Anyone getting a refund should use the opportunity to improve their financial fitness, encourages Michelle Dosher, managing editor in the Credit Union National Association's business and consumer publishing department. Dosher says consider these options:
Pare debt. Make a credit card payment that's higher than your usual payment or, better yet, pay off your card. Pay off part of a student loan, or use your refund as part of a down payment on a new car.
Pay bills. Use your refund toward school supplies and tuition.
Boost savings. Add your refund to a savings account for future recreation or build your rainy day fund for financial emergencies. Contribute to an IRA now instead of waiting until next year's tax-filing deadline. Save your refund to cover insurance deductibles or add it to your savings for a down payment on a house.
Have fun. Enjoy a long weekend somewhere special, become a member of a health club, or enroll in a class to learn a new skill.
Do good. Donate to a good cause; get a tax receipt so you can take the charitable deduction if you itemize deductions on your next tax return.
Tax preparation time forces consumers to get organized. For ideas about purging and organizing paperwork, listen to the Home & Family Finance Radio segment, "Spring Clean Your Records," in the Home & Family Finance Resource Center