Millennials, or Generation Y, tend to have a reputation of being entitled, lazy and naïve. However, recent data shows that they’re making some of the most responsible choices when it comes to spending their tax refunds.
While the usual big-ticket items and holidays are still popular, a number of recent surveys have shown that more than half of respondents, aged 18 to 33, plan to save their tax refund. This includes those who wish to invest their rebate.
After saving, paying off debt was the next biggest goal for millennials.
The surveys also found that over 80 per cent of respondents feel significantly stressed around the thought of having to complete their tax refund. The biggest concerns included:
- Making a mistake
- Not getting the maximum possible refund
- Paying too much
Millennials, simply because of their age, have less history with income taxes. As many millennials will be completing a tax refund for the first time, the UK’s complicated tax laws can seem particularly intimidating.
Apart from their age, career choice also comes into play. Generation Y has more freelancers than any other age category. Millennials have grown up with a do-it-yourself attitude and sense of self-reliance; this could discourage many from seeking professional tax help.
While saving and paying off debt are both wise choices for any tax refund, this is the time that retailers, car dealerships and credit card companies try to take advantage of your windfall, offering tempting sales and financing options. If you do decide that your refund needs to go towards a big ticket item, do your research on any major purchases beforehand to make sure you really are getting the best deal.