More U.S. workers plan to invest their tax refunds this year, a significant change from previous years, reports Principal Financial Group, Des Moines, Iowa.
A study by Principal found a marked decrease from previous surveys in the number of workers who said they’ll spend their refund on big-ticket items (7%, down from 16% percent in 2003). Only 44% said they’d use it to pay down short-term debt, down from 50% in 2003.
But there was a striking increase in those who said they plan to save and invest their refund this year–38%, up from 31%.