By now, most people who are due a tax refund check from the IRS has received it. So what are people doing with the money that they received. A recent survey asked Americans what they are doing.
About 5% of people responding to the survey said they planned to splurge and make a purchase. An additional 11% are looking to use the refund money for a vacation. And 38% plan to pay off some of their debt.
But the largest group, 41%, plan to put that money into savings.
Here’s an idea. Use the money as a down payment on a house if you don’t already own one. The average American who purchases a home in 2016 only put down 6% of a down payment. They can reduce that larger mortgage then if they made a larger down payment, and also they needed to pay some type of mortgage insurance. By making a larger down payment, they would be able to save on both of these amounts. And in the long run it will be a financially sound decision for them.
If you already have your home possibly you could use that money to help your children buy a home. This would set them up for their future and help them achieve their dream of home ownership.
Just an idea.