If you’re among the thousands of Canadians receiving an income tax refund and you’re wondering what to do with the cash when you get it, here are some thoughts on what your fellow citizens are doing with theirs.
CIBC has compiled a survey of taxpayers, looking for insight into what they plan to do with their refunds this year and, it turns out, the biggest percentage say nothing.
They are planning to hold it in cash. Plain and simple. Only one in ten intend to put the money to work by investing it.
And the largest group – 39 per cent of those surveyed – said hold it as cash. That’s up from last year.
Twenty-nine per cent will direct it towards paying for essentials. That too is down from last year. Twenty-four per cent – almost one-quarter of those surveyed – will use the money to pay down debt. Last year that figure was 32 per cent so the number in this group is declining.
Twelve per cent said they will devote this cash to discretionary spending. That also is lower than last year’s 17 per cent. And finally, the last 12 per cent will invest the money with an eye to growth.
