If you’re getting a tax refund this year, are you planning to use it responsibly or splurge instead?
According to a survey conducted by travel site Hipmunk, 54% of online adults in the United States said if they had to choose one thing, they would spend the money on travel. This contrasts with other surveys on tax refund spending, likely due to the wording of the survey question, which asked people what they would do if they “could” spend the money on “only one thing.”
The Hipmunk survey, which polled 4,000 people, also found that 25% of respondents would save their money, 17% would pay down debt and 4% would go shopping.
Asking what people plan to actually do with their refunds gets different results. In its annual survey of 1,000 investors, TD Ameritrade asked how respondents planned to spend the money, assuming they received a refund.
In that survey, 45% of respondents said they would save the money, while only 19% said they would spend their refund on discretionary items, like goods or travel. In 2013, TD Ameritrade’s survey found similar results, with 47% saying they would save their money.
While saving money may be more responsible, it isn’t very fun. This explains the discrepancy between what people want to do and what they feel obliged to do.
In Hipmunk’s survey, respondents were also asked where they would most like to travel. The most popular destinations were Italy, Hawaii and Australia, along with Paris, Greece and London following closely behind.
Based on the amount of the average tax refund — about $3,000 — Hipmunk suggested a few travel itineraries.
Will you spend your tax refund on travel this year? If so, where will you go?