Coming into a modest windfall is rare. But for some, it happens once a year — in the form of a tax refund.
The IRS issued 111.9 million refunds in 2017, averaging $2,895 apiece.
But forget about blowing all that new-found dough on a night on the town. This year, more Americans plan to stash the cash they get back from Uncle Sam.
Of those who expect to receive money from the government, 43 percent said they will put the funds in a savings account, up from 41 percent last year, according to a report by GoBankingRates.
Another one-third of Americans expecting a refund said they’ll use the extra money to pay down debt, down slightly from a year earlier. Just 1 in 10 said the cash would go toward a vacation, and only about 5 percent planned to splurge or make a major purchase.
About one-third of those polled don’t expect to get a refund, GoBankingRates said. (If you’re in this boat, don’t despair; this may mean you’re doing a good job of managing your withholdings and quarterly tax payments throughout the year.)
Depending on your financial situation, a refund offers a rare opportunity to improve your financial standing, according to Experian. Here are the credit reporting firm’s top tips for how to put this money to good use: