Where Consumers Will Spend Tax Refunds
Taxpayers may view April 15 as the "Ides of April" because of the filing deadline, but apparently they're wrong and most of them should be happy—as should marketers. Not only is lucky Monday the 13th the actual Ides of April date on the Roman calendar, but eight in 10 of taxpayers will get refunds and half of them plan to spend it with marketers, says the National Retail Federation. On Thursday, Neustar released an infographic to reveal "non-intuitive" insights into how consumers may be spending that money.
The first insight from the Sterling, Va.-based real-time marketing analytics software and services provider is about tax preparers themselves: "20 percent of Generation Xers use Turbo Tax online and 15 percent of Millennials go to an H&R Block storefront to get help with filing their taxes."
Neustar also found corollaries with these NRF results: "13 percent say they will splurge on a vacation, 10.5 percent plan to spend on a major purchase like a television or car." A subset of those taxpayers planning to spend their refunds include Millennials, 10 percent of whom plan to get married and buy a home this year. In 2014, 17 percent bought a used car and 16 percent took "group trips when going on vacation."
While both groups of researchers may count this group as being out of circulation, financial marketers may be pleased with the 47 percent of refund recipients who NRF says plan to save the money.
Are any marketers owed payment? NRF says 39.1 percent of refund-receiving consumers plan to "pay down debt and 25.1 percent plan to use it for daily expenses."
For more insights into where this money may go, take a look at the infographic at right. For the full infographic, please scroll to the second image.
Where else do marketers expect tax refunds to go?