More Americans Will Save Their Tax Refunds

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NEW YORK (MainStreet) – With tax day almost upon us (Monday, to be exact), Americans’ plans for what to do with their tax refunds include some encouraging signs for the economy.

In an annual survey of 3,600 American workers, CareerBuilder found that a solid 36% of Americans plan to put their refund into savings, up slightly from the 34% who said the same last year. Even more notable, though, is what they’re not doing: Just 46% say they plan to use their refund to pay off bills, down significantly from the 56% who said the same.

That conclusion suggests that fewer people are so buried in debt and unpaid bills that they need to use their tax refund to get out of trouble. Indeed, the same survey finds that 61% of American are living paycheck to paycheck – still a high number, but down significantly from 77% just a year ago.

“As the economy gradually rebounds and strengthens, workers are gaining confidence,” said CareerBuilder Vice President of Human Resources Rosemary Haefner in a statement. “We’re seeing this already as more are investing in their futures and preparing for challenges down the road.”

In addition to savings and bills, some workers will also use their refunds to treat themselves to some big-ticket purchases like cars, vacations and computers. Meanwhile, others are finding other ways to invest in the future by putting their refund toward home improvements or other investments.

How will you spend your tax refund?

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