Almost seven in 10 Canadian taxpayers say plan to use their income tax refunds to “buy something I need”, according to a survey released by consumer credit firm TransUnion.
The survey, conducted by Roper Public Affairs, found that the top three intended uses for a refund in Canada are:
- buy something they need (66%);
- save it for a rainy day (58%); and
- pay down their mortgage or other bills (58%).
The survey, which allowed respondents to select more than one of six possible responses to explain how they would allocate their total refund dollars, also discovered: 49% would pay off credit card bills; 35% would splurge on something fun; and 33% would take a vacation
“It appears that many Canadians are seeing a tax refund this year as a way to buy necessities or serve as a safeguard against future expenses,” said Tom Reid, director, consumer solutions at TransUnion in Canada. “This fiscal discipline is encouraging.”
Reflecting the higher debt vulnerability of younger Canadians, the survey also found that those between the ages of 18 and 29, are more likely than their older counterparts over the age of 50 to say that they would spend their money.
TransUnion also asked Canadians if they were planning on taking out a loan this year to finance their retirement accounts, and the overwhelming majority (94%) said they are not planning on it.
Roper Public Affairs conducted this study using Random Digit Dialing (RDD) methodology from February 9 to February 12, 2006. A total of 1,002 interviews were conducted among adults across Canada. Age, gender, income and geographic information were collected. The margin of error for the complete sample is +/- 3 percentage points. The margin of error for subgroups may be higher.