Paul Martin commentary
With April 30th – the deadline for filing last year’s income tax returns – now firmly in the rear-view mirror, we have entered tax refund season.
A new survey by TD Bank suggests 8-in-10 Canadians say they’re getting a refund leading to the question: what will we do with that money?
It turns out prudence is the word of 2026 as splurge spending is replaced by investment or debt reduction.
Forty-percent of us will pass on the opportunity for some ‘feel good’ spending like a holiday. That number is even higher among the Gen Z demographic. Two-thirds of the Gen Z group plan to save it, double the number who said that last year. They say it is because of the economic headwinds they are feeling.
For the broader population, the numbers are trending in the same direction. Half say they will save the money, twice last year’s pace while a third plan to direct the refund to debt repayment and a quarter will invest the money in a vehicle such as a TFSA which has now become the account of choice over an RRSP.
