WASHINGTON — After more than a year, Cary Chan finally got that big check from the Internal Revenue Service.
“I’ve been thinking about it since March 2009,” Chan said.
The 25-year-old purchased his first home in the Lincoln Park neighborhood of Chicago in March of last year and is planning to spend his $8,000 refund from Uncle Sam on home repairs and new furniture.
Chan stands out as an anomaly among Americans, 30 percent of whom plan to use their refunds to pay down debt, according to a poll commissioned by , which specializes in financial data.
The poll, released Monday, also found that 28 percent said they would save or invest what they got from their returns and 7 percent said they would treat themselves with vacations or shopping sprees.
Since you’re getting a tax refund, though, it’s OK to buy that shiny new iPad, right? Think again. Financial planners are warning people to resist the temptation to buy new trinkets.
“Take that moment and recognize this is money you made at your job, the same money to pay rent and credit cards,” said Pat Seaman, a spokeswoman for the National Endowment for Financial Education. “It’s your money. It’s not a free gift that you should go out and spend on toys.”
