Teaching your teens early about finances, money, saving and spending can help prevent financial disasters when they are adults. Filing taxes is one part of their life that will follow them for a long time. Although many teens are able to use the easy tax filing services such as Turbo Tax online, it is important to talk to your teen about how they will be using their refund. Will they be saving it or spending it?
According to the National Retail Federation survey: 13.2% will spend their refund on a big-ticket item, up from 12.5% last year. The NRF survey found that more people will also put their refunds away for a rainy day (42.1% vs. 40.3% in 2010).
What will teens be doing with their tax refund?
Matthew D., 19 years-old, of Pembroke Pines said he will be putting his toward a new iPad. “I got back just over $200.00 and I am putting towards a new iPad. I have the rest in savings.”
Susan K, 17 years-old, of Wilton Manors, said she will be putting her refund away for summer vacation. “We always go to Cape Cod and I like to have my own spending money.”
Dillon J., 17 years-old, of Ft. Lauderdale said he is definitely putting it in his savings account for college. “We are visiting colleges this summer and I want to be sure I can afford the extras that my pre-paid college fund doesn’t cover.”
Hannah J., 18 years-old, of Ft. Lauderdale said she had her eye on a new pocketbook. “I know it may sound frivolous, but I have wanted this one bag since last summer. I will save the rest of my refund for going out with my friends.”
What exactly will your teenager be doing with their refund? What will you be doing with yours?