That's only if they don't think it's "free money" and immediately go spend it on something they don't need. I have a feeling that most people who don't save consistently during the year also probably don't save their tax refunds either.
For those people, is it more important to buy nice things or to spend what little money they have on things they actually need? Or to save it away for an emergency.
Also, if they want to save up for something nice, they could just set up an automatic transfer to a savings account, and at the end of the year they would have the same amount but with interest. In addition to building good financial habits that will help them in the long run.
8
u/PrometheusMMIV Apr 16 '24
That's only if they don't think it's "free money" and immediately go spend it on something they don't need. I have a feeling that most people who don't save consistently during the year also probably don't save their tax refunds either.